577 B.R. 265
Bankr. E.D. Mich.2017Background
- Debtor filed Chapter 7 on October 22, 2016; first meeting of creditors set for November 30, 2016.
- Rule-required certificate of completion of a post-petition financial management course (Official Form 423) had to be filed within 60 days after the § 341 meeting (deadline Jan 30, 2017).
- Debtor did not file the certificate and the case was closed without discharge on January 31, 2017; notice mailed Feb 2, 2017.
- Nearly 11 months later (Nov 28, 2017) Debtor filed an ex parte motion to reopen the case to file the certificate and obtain a discharge, also seeking waiver of the filing fee.
- Motion contained only the allegation that the course was completed Nov 27, 2017 and offered no explanation for the missed deadline or the 11-month delay.
Issues
| Issue | Debtor's Argument | Court/Opposing Argument | Held |
|---|---|---|---|
| Whether the case should be reopened so debtor can file the financial-management certificate and obtain a discharge | Debtor: completed the course Nov 27, 2017 and requests reopening to file the certificate | Reopening requires judicial discretion and a showing of "cause"; delay frustrates Congressional purpose and harms creditors | Denied — no cause shown to reopen |
| Whether an extension of time to file the certificate should be granted | Debtor: requests extension implicitly by motion to reopen and file certificate | Rule 1007(c) allows extensions only for cause and generally on motion with notice; here no explanation or notice shown | Denied — no extension granted |
| Whether the motion filing fee should be waived | Debtor requested waiver of the motion filing fee | Court may waive fees in its discretion even if motion is denied on merits | Granted — filing fee waived |
| Whether debtor may file a new bankruptcy case | Debtor seeks relief ultimately by completing requirement | Court recognizes statutory right to file new case though current reopening denied | Allowed — debtor not prohibited from filing new case |
Key Cases Cited
- Rosinski v. Rosinski, 759 F.2d 539 (6th Cir. 1985) (reopening decisions are committed to bankruptcy court discretion)
- In re Barrett, 569 B.R. 687 (Bankr. E.D. Mich. 2017) (denying reopening after long delay to file certificate; applies multi-factor cause test)
- In re Johnson, 500 B.R. 594 (Bankr. D. Minn. 2013) (denying reopening where debtor delayed years before completing post‑petition course)