Bernard Andrew Rothman
19-15963
Bankr. D.N.J.May 22, 2025Background
- Debtor Bernard Rothman filed for Chapter 13 bankruptcy in March 2019, then converted to Chapter 7 the following month.
- Secured Creditor (U.S. Bank Trust NA as Trustee) was granted relief from the automatic stay regarding foreclosure on Rothman’s residence after court found bad faith in serial bankruptcy filings.
- Rothman received a Chapter 7 discharge in September 2019, and the case was closed in 2020.
- In 2025, nearly five years after closure and after the property was sold at Sheriff’s sale, Rothman (pro se) filed motions to reopen the case, reinstate the automatic stay, and stay his eviction.
- Secured Creditor objected, arguing the property was no longer part of the bankruptcy estate, all claims had been previously litigated and rejected, and no credible new basis was provided to reopen the case or reimpose stays or injunctions.
Issues
| Issue | Rothman’s Argument | Secured Creditor’s Argument | Held |
|---|---|---|---|
| Reopen the closed bankruptcy case | To reimpose the automatic stay and add creditors/discharge new claims; cites police interference, deed issues | No assets remain, property abandoned, all issues previously resolved or on appeal | Denied—no cause, excessive delay, prejudice |
| Reinstate the automatic stay on the property | Financial situation improved, stay needed to halt foreclosure and sale | Property sold, abandoned by trustee, collateral estoppel on debt validity | Denied—moot, no jurisdiction, no new facts |
| Stay eviction from property | Pending motions, improper Sheriff’s Deed, public policy support | Property sold, court lacks jurisdiction, no irreparable harm shown | Denied—moot, no core proceeding, no legal basis |
| Reconversion to Chapter 13 | Seeks to reorganize debts, add creditors | Five-year plan period expired, no good faith, procedural bar | Denied—not timely, not in good faith, futile |
Key Cases Cited
- Redmond v. Fifth Third Bank, 624 F.3d 793 (7th Cir. 2010) (factors for considering motions to reopen bankruptcy cases)
- Judd v. Wolfe, 78 F.3d 110 (3d Cir. 1996) (unsecured creditors in a no-asset Chapter 7 need not be scheduled to attach discharge)
- Erickson v. Pardus, 551 U.S. 89 (2007) (leniency and liberal construction of pleadings for pro se litigants)
- Wedgewood Realty Grp., Ltd., 878 F.2d 693 (3d Cir. 1989) (factors for preliminary injunctions in bankruptcy context)
- Pacor, Inc. v. Higgins, 743 F.2d 984 (3d Cir. 1984) (test for “related to” jurisdiction in bankruptcy)