635 B.R. 150
Bankr. E.D. Mich.2022Background
- Michael A. Motley, Jr. filed a pro se Chapter 7 petition on September 28, 2018; the §341 meeting was set for November 14, 2018.
- Under Rule 1007(b)(7) and §727(a)(11), Motley had to file Official Form 423 (Financial Management Course Certificate) within 60 days after the §341 date (deadline: Jan. 14, 2019).
- Motley did not file the certificate or seek an extension; the case was closed without a discharge on January 20, 2019, and notice of that closure was mailed to him.
- On January 10, 2022—almost three years later—Motley moved to reopen the case to file the Form 423 and requested waiver of the reopening filing fee.
- The Court applied the four-factor test used in similar matters (reasonable explanation, timeliness, fault, creditor prejudice), found no excuse for the delay, denied the motion to reopen and to grant a retroactive extension, but waived the motion filing fee; Motley remains free to file a new bankruptcy case.
Issues
| Issue | Motley’s Argument | Court’s/Opposing Argument | Held |
|---|---|---|---|
| Whether "cause" exists to reopen the closed Chapter 7 case so Motley can file the Financial Management Course Certificate | Motley sought reopening so he could immediately file Official Form 423 and obtain a discharge | Court: reopening governed by §350(b) and Rules; debtor bears burden to show cause and must justify long delay | Denied — no cause shown to reopen |
| Whether Motley provided a reasonable excuse for failing to timely complete and file the course certificate | Motley did not allege any explanation in the motion | Court noted prior mailed notices and absence of any credible excuse for the near-3‑year delay | Factor 1 against reopening; no reasonable excuse shown |
| Whether Motley’s request to reopen was timely | Motley waited ~3 years after case closing to move to reopen | Court: such long delay frustrates the purpose of the post-petition financial course and disfavors retroactive relief | Factor 2 against reopening; delay untimely |
| Whether the filing fee for the motion should be waived | Motley requested waiver of the reopening filing fee | Court assessed fee waiver separately from reopening merits | Fee waiver granted, but motion to reopen denied; debtor may file a new bankruptcy case |
Key Cases Cited
- Rosinski v. Rosinski, 759 F.2d 539 (6th Cir. 1985) (decision to reopen bankruptcy cases lies within bankruptcy court’s discretion)
- In re Barrett, 569 B.R. 687 (Bankr. E.D. Mich. 2017) (applied four-factor test and denied reopening to file Form 423 after long delay)
- In re Rivera, 628 B.R. 309 (Bankr. E.D. Mich. 2021) (denial of reopening where delay produced prejudice and no sufficient excuse)
- In re Johnson, 500 B.R. 594 (Bankr. D. Minn. 2013) (denial of motion to reopen after multi-year delay)