- Case Type:
- Case Status:
- Reversed and Remanded
- 6th Cir, B.A.P. Case No. 15-8056 (6th Circuit, Nov 29,2016) Published
The Bankruptcy Court abused its discretion in denying the debtor's motion to reopen his chapter 7 case, pursuant to section 350(b), based solely upon the passage of time, where the debtor showed that reopening the case would provide him relief and there was no finding of prejudice to creditors.
- Procedural context:
Reversing and remanding the decision of the Bankruptcy Court for the Northern District of Ohio denying a debtor's motion to re-open his chapter 7 case pursuant to section 350(b).
Debtor filed a chapter 7 petition on November 18, 2011 and received a discharge on March 20, 2012. The debtor's case was closed on March 23, 2012. In his schedules the debtor, albeit incorrectly, listed certain judgment liens on his real property. The debtor and his counsel were aware of the judgment liens, but decided not to avoid the judgment liens because he intended to sell or surrender his home after the case was closed. On December 2, 2015, the debtor filed a motion to reopen his case in order to avoid the judgment liens because he now intended to refinance his home and could not do so with the liens in place. No creditors objected to the motion, but the Bankruptcy Court denied the motion to reopen because the debtor and his counsel were aware of the judgment liens at the time of the filing, made a strategic (albeit foolish) decision not to avoid the liens, and more than 3 1/2 years had passed since the case had been closed.
- Harrison, Preston, Wise
IN RE: JOHN FLISS
Summarizing by Shane Ramsey
IN RE: JOHN FLISS
Summarizing by Amir Shachmurove
3586 in the system
10 Being Processed