575 B.R. 783
Bankr. E.D. Mich.2017Background
- Debtor filed Chapter 7 on December 11, 2015; initial §341 meeting was set for January 20, 2016 and re-noticed to February 3, 2016 after a missed appearance.
- Clerk mailed a notice (Jan 28, 2016) warning the Debtor that Official Form 423 (Certificate of completion of a personal financial management course) must be filed within 60 days after the first §341 date (deadline March 21, 2016).
- Debtor did not file the Certificate by the deadline and did not seek an extension; the case was closed without a discharge on July 20, 2016 for failure to file the Certificate.
- Debtor completed an online financial management course on August 29, 2016 and filed (Oct. 16, 2017) a Motion to Reopen the case to file the Certificate and obtain a discharge, also seeking waiver of the motion filing fee.
- The court found no explanation for (a) missing the March 21, 2016 deadline, (b) completing the course months later, or (c) waiting ~15 months after closure to move to reopen; the court denied reopening (but waived the filing fee) and struck the late Certificate.
Issues
| Issue | Debtor's Argument | Court/Opposing Argument | Held |
|---|---|---|---|
| Whether the case should be reopened to allow filing of Official Form 423 and obtain a discharge | Motion argues case should be reopened so Debtor can file the Certificate and receive a discharge | No valid excuse shown for missing the deadline, long delay in filing the motion, and reopening is discretionary; reopening limited to cause under §350(b) and Rule 1007(c) | Denied (no cause to reopen) |
| Whether an extension of time to file the Certificate should be granted after the deadline | Seeks an effective retroactive extension to file Certificate and obtain discharge | Extensions require motion for cause and notice; Debtor failed to show cause or timeliness | Denied (no extension) |
| Whether the late Certificate filed Oct. 16, 2017 should be accepted | Certificate purports completion on Aug. 29, 2016; filed with reopening motion | Certificate untimely and case remains closed; acceptance would undermine statutory timing and purposes | Stricken (untimely) |
| Whether the filing fee for the motion to reopen should be waived | Requests waiver of the fee | Court may waive fee in its discretion despite denying substantive relief | Fee waived |
Key Cases Cited
- Rosinski v. Rosinski, 759 F.2d 539 (6th Cir. 1985) (reopening bankruptcy cases committed to court's discretion)
- In re Barrett, 569 B.R. 687 (Bankr. E.D. Mich. 2017) (denying motion to reopen to file Certificate after multi-year delay; applies four-factor test)
- In re Johnson, 500 B.R. 594 (Bankr. D. Minn. 2013) (applying delay-based analysis to deny reopening for Certificate)