How to File a Motion to Reopen a Chapter 7 Bankruptcy Case

So, you need to reopen a Chapter 7 bankruptcy case. Luckily, you are able to do so. However, it is a complicated process that must be followed or the court will deny it.  In this guide, we’ll walk you through the steps you must take in order to successfully reopen your Chapter 7 bankruptcy case. 

Draft a Written Motion

Your first step will be drafting a written motion to the court. This should be titled “Motion to Reopen”. You will need to file this written motion with the bankruptcy court that originally handled your case. An important part of the written motion is explaining why you are seeking to reopen the bankruptcy case. We’ll get into specific reasons for reopening later, but it is of the utmost importance that you include this. Without a valid reason for reopening, the bankruptcy court will definitely deny your motion to reopen. 

Include a Proposed Order

Along with your written motion, you will need to include a proposed order.  A proposed order is a draft legal document. Its purpose is to suggest to a judge the specific language to use in a court order. Specifically, a proposed order serves to:

• Outline the relief a party is seeking. 
• Detail the ruling the court made after a hearing, reducing the judge’s workload by providing a ready-to-sign order. 

In this situation, the proposed order will be one that orders the reopening of a bankruptcy case. It is important that you seek the help of a bankruptcy attorney when it comes to drafting the proposed order. The document must be drafted in a specific way and use certain legal language. These factors make it almost impossible for a layman to draft a proposed order that will be accepted by the judge. 

Draft a Required Notice of Motion

Every motion must also be accompanied with a document called a “notice of motion”. It tells each party what you filed, the date of the hearing, and how to respond if they disagree.  It is very technical and must be in the form required by the Court.

Pay the Filing Fee

Unfortunately, reopening a Chapter 7 bankruptcy case does not come free of charge. You must pay a filing fee. This fee does not vary from state to state, as it is set by the federal judiciary and applies in all bankruptcy courts. You will need to pay $260 at the time of filing. The only way to have this fee waived is if:

• You are filing a motion to reopen the case due to an alleged violation of the discharge order.
• The reopening is to request unclaimed funds or to correct an administrative error. 

If neither of the above apply to your situation, you will be required to pay the filing fee in order to have your Chapter 7 bankruptcy case reopened. 

File the Motion and Paperwork with Bankruptcy Court

Once you have prepared your motion to reopen, notice of motion, and your proposed order, and have your filing fee, it is time to file the paperwork. As mentioned previously , this must be done with the specific bankruptcy court that originally handled your case. You will file your motion with the clerk of that specific court. Usually, this is done online. 

Reasons to File a Motion to Reopen

As mentioned, you must explain to the court why you want to reopen your Chapter 7 bankruptcy case. Such reasons may include: 

• Forgot to List an Asset: If you failed to disclose a valuable asset, the case may be reopened to include said asset and have it administered by the trustee.
• Forgot to List a Creditor: In a case where assets were distributed to creditors, the case may be reopened so the omitted creditor can be added.
• Failed to Complete Required Courses: Filing for bankruptcy requires the taking of a financial education course. If your case was closed without a discharge because you failed to file your course certificate, you can reopen it to submit the certificate and receive your discharge.
• Enforce the Discharge Injunction: If a creditor attempts to collect a debt that was discharged in your bankruptcy, you may need to reopen the case to ask the court to enforce the discharge order.
• Avoid a Lien: You may need to reopen the case to file a motion to remove a judgment lien from your property

All of the above are considered valid reasons for the reopening of a Chapter 7 bankruptcy case. 

What Is the Rule for Bankruptcy Motion to Reconsider

Related to reopening a case, is a motion to reconsider. It is a formal request for a bankruptcy court to re-examine a decision it has already made. This can be done under Bankruptcy Rule 9023, which allows for 14 days after the court’s decision to file a motion to reconsider. This motion will only be accepted if:

• The law controlling the case has changed since the court’s ruling.
• New evidence has become available that could not have been discovered in time for the original hearing.
• The court made a clear error of fact or law, and reconsidering the decision is necessary to prevent a “manifest injustice”. 

If none of the above are true, your motion to reconsider will most likely be denied.