582 B.R. 1
Bankr. E.D. Mich.2018Background
- Debtor Shannon A. Lockhart filed a Chapter 7 petition on June 10, 2016; the § 341 meeting was set for July 20, 2016. Notice was served to the debtor and counsel.
- Under Rule 1007(c) and § 727(a)(11), the debtor had 60 days after the § 341 date (deadline Sept. 19, 2016) to file the Official Form 423 Certificate of Completion of a financial management course.
- The debtor did not file the Certificate by the deadline, did not seek an extension while the case was open, and the case was closed on Jan. 17, 2017 without a discharge. Notice of the closing without discharge was mailed to the debtor and emailed to counsel.
- The debtor completed the course on Jan. 10, 2018 and moved to reopen the case on Feb. 1, 2018 to file the Certificate and obtain a discharge; the motion also requested waiver of the reopening filing fee and retroactive reinstatement of the automatic stay.
- The motion contained no explanation for the failure to timely complete the course, nor for waiting more than a year after closing to move to reopen.
- The court denied the motion to reopen (but waived the filing fee) after applying a multi-factor test assessing "cause" to reopen and whether to grant an extension to file the Certificate.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the case should be reopened so debtor can file the post-petition financial management Certificate and obtain a discharge | Debtor: completed course Jan. 10, 2018 and requests reopening to file Certificate and receive discharge | Court: debtor offered no reasonable explanation for missing deadline or for 1+ year delay in moving to reopen; creditors and statutory purposes prejudiced by long delay | Denied — no cause shown to reopen or to extend time to file Certificate |
| Whether the filing fee to reopen should be waived | Debtor requested fee waiver | Court considered request | Granted — filing fee waived |
| Whether the automatic stay should be reinstated retroactively | Debtor requested retroactive reinstatement | Court considered but did not grant relief because reopening denied | Not granted (motion to reopen denied; stay reinstatement therefore not applied) |
Key Cases Cited
- Rosinski v. Rosinski, 759 F.2d 539 (6th Cir. 1985) (reopening decisions committed to bankruptcy court's discretion)
- In re Barrett, 569 B.R. 687 (Bankr. E.D. Mich. 2017) (denying reopening to file financial management certificate after long delay)
- In re Johnson, 500 B.R. 594 (Bankr. D. Minn. 2013) (denying reopening after multi-year delay to complete post-petition financial management course)
- In re Rondeau, 574 B.R. 824 (Bankr. E.D. Mich. 2017) (discussing factors relevant to reopening to file certificate)
- In re Wilson, 575 B.R. 783 (Bankr. E.D. Mich.) (denying reopening where delay undermines purpose of course requirement)