Michigan Motion and Order Reopening Case after Bankruptcy is a process used to reopen a bankruptcy case after it has been closed. This process is initiated by the debtor's attorney and requires a Motion to Reopen the Case, an Order to Reopen the Case, and an accompanying Affidavit of Compliance with the Bankruptcy Code. The Motion and Order are submitted to the court in order to request the reopening of the bankruptcy case. There are three types of Michigan Motion and Order Reopening Case after Bankruptcy: Reopening of Chapter 7 Case, Reopening of Chapter 11 Case, and Reopening of Chapter 13 Case. All three types involve filing a Motion and Order to Reopen the Case and an accompanying Affidavit of Compliance with the Bankruptcy Code. The Motion and Order must include the reasons for reopening the bankruptcy case, and the Affidavit of Compliance must specify the compliance with the Bankruptcy Code. The court may grant a reopening of the bankruptcy case if it is satisfied with the debtor’s case and the reasons for reopening.
Michigan Motion and Order Reopening Case after Bankruptcy
Description
Key Concepts & Definitions
Motion and Order Reopening Case After Bankruptcy: This refers to the legal process in which a previously closed bankruptcy case can be reopened by a court order. This is typically sought for recovery of new assets, modification of the terms of the bankruptcy, or to address disputes among creditors or between creditors and the debtor that have not been resolved by the original bankruptcy proceedings.
Step-by-Step Guide
- Filing a Motion: The debtor or creditor must file a motion with the bankruptcy court requesting the reopening of the case. This document must outline the reasons for reopening and provide any necessary supporting evidence.
- Notice to Parties: Upon filing, notice must be given to all parties affected by the original bankruptcy case, allowing them the opportunity to object or support the motion.
- Court Review: The court will review the motion, along with any objections or support from other parties, to decide whether there is sufficient cause to reopen the case.
- Hearing and Decision: If required, a hearing is scheduled where parties can present their cases. The court will then make a decision based on the information presented.
- Implementation: If the court approves the motion, the case is officially reopened, and further legal proceedings may commence based on the court's directives.
Risk Analysis
- Legal Costs: Reopening a bankruptcy case can incur significant legal costs, including attorney fees and court costs.
- Delay in Closure: Reopening a case can lead to delays in the final resolution, affecting financial and emotional closure for involved parties.
- Outcome Uncertainty: There is always an uncertainty in the outcome when reopening a case. The court might not rule in favor of the applicant, leading to wasted resources and time.
Common Mistakes & How to Avoid Them
- Insufficient Reasoning: Providing insufficient reasons for reopening can lead to quick dismissal of the motion. Ensure comprehensive documentation and justification.
- Poor Documentation: Failing to properly document new evidence or issues can hinder your case. Maintain organized and thorough records.
- Ignoring Legal Advice: Not consulting with a legal expert can result in procedural errors. Always work with a bankruptcy attorney.
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FAQ
(1) Unless another rule provides a different procedure for reconsideration of a decision (see, e.g., MCR 2.604(A), 2.612 ), a motion for rehearing or reconsideration of the decision on a motion must be served and filed not later than 21 days after entry of an order deciding the motion.
A Motion for Reconsideration is brought under Michigan Court Rule 2.119(F) and requires the moving party to demonstrate that a palpable error by which the court and the parties have been misled and that a different outcome would occur from the correction of the error.
How do I file a Motion? You file a motion by completing the form and filing it with the same court that signed the default entry or default judgment. There is a $20 motion fee for filing a motion to set aside default.
MOTION FOR REHEARING The moving party must demonstrate a palpable error by which the Court and the parties have been misled and show that a different disposition will result by correcting the error. MCR 7.311(F), referencing MCR 2.119(F)(3).
MCR 2.119(F)(3). The party moving for reconsideration ?must demonstrate a palpable error by which the court and the parties have been misled and show that a different disposition of the motion must result.? MCR 2.119(F)(3).
(A) Responses to all motions, except those listed in subparagraph 2(A) below, must be filed within 14 days after service of the motion. (B) If filed, a reply brief supporting such motion must be filed within 7 days after service of the response, but at least 3 days before the motion hearing.
When an appellant requires a decision on an application in fewer than 35 days, the appellant must file a motion for immediate consideration concisely stating why an immediate decision is required.
As you will notice by #1 above, if you filed a motion for rehearing or motion to reconsider within 21 days of the final written order being entered, then the time in which you must file an Appeal is tolled (delayed) until after a final order denying your motion for rehearing or denying your motion for reconsideration.