613 B.R. 113
Bankr. E.D. Mich.2020Background
- Debtor Holly Frances Jackson filed a Chapter 7 petition on August 13, 2018; the §341 meeting was set for September 20, 2018.
- A post-petition financial management course certificate (Official Form 423) was required within 60 days after the §341 date (deadline November 19, 2018); the Court mailed a reminder on October 1, 2018.
- The Debtor failed to file the certificate by the deadline and did not move to extend the deadline.
- The case was closed on January 16, 2019 without a discharge for failure to file the certificate; notice of closing was mailed to the Debtor January 18, 2019.
- More than 13 months later, the Debtor completed the course (February 27, 2020) and, on March 9, 2020, filed an ex parte motion to reopen to file the certificate and obtain a discharge.
- The Court denied the motion, finding no cause to reopen or to grant a retroactive extension given the unexplained, lengthy delay and prejudice concerns; the Debtor may file a new bankruptcy case.
Issues
| Issue | Debtor's Argument | Respondent's Argument | Held |
|---|---|---|---|
| Whether the case should be reopened and a retroactive extension granted so Debtor can file the Financial Management Course Certificate and obtain a Chapter 7 discharge | Debtor completed the course after case closure and seeks reopening to file the certificate and receive a discharge | No adequate excuse for missing the deadline or for the 13+ month delay in seeking reopening; reopening is discretionary and must consider equities and prejudice to creditors | Denied: Court found no cause to reopen or to grant a retroactive extension (all four equitable factors weighed against reopening) |
Key Cases Cited
- Rosinski v. Rosinski, 759 F.2d 539 (6th Cir. 1985) (reopening a bankruptcy case is committed to the bankruptcy court’s discretion)
- In re Barrett, 569 B.R. 687 (Bankr. E.D. Mich. 2017) (applied four-factor test and denied motion to reopen to file post-petition financial-management certificate)
- In re Jones, 611 B.R. 279 (Bankr. E.D. Mich. 2020) (denial of motion to reopen where delay exceeded 19 months)
- In re Lockhart, 582 B.R. 1 (Bankr. E.D. Mich. 2018) (denial of motion to reopen where delay exceeded one year)