Is it mandatory to reopen a Chapter 7 to file an adversary under Sec.

Post Reply
Yahoo Bot
Posts: 22904
Joined: Sun Oct 18, 2020 11:38 pm


In re Menk says no need to reopen BK in order to file a 523 action . . .
is this correct?
"The linchpin of our mootness analysis is that exercising jurisdiction
pursuant to the "arising under" clause of 28 U.S.C. 1334(b) to determine
whether a debt is excepted from discharge does not require that the closed
bankruptcy case first be reopened under 28 U.S.C. 1334(a). Reopening is
irrelevant to the bankruptcy court's jurisdiction to determine whether a
debt is excepted from discharge. Hence, no effective relief could be
fashioned if we were to reverse the reopening.
Court said. . . .
"We have repeatedly held that the reopening of a closed bankruptcy case is
a ministerial act that functions primarily to enable the file to be managed
by the clerk as an active matter and that, by itself, lacks independent
legal significance and determines nothing with respect to the merits of the
case. *E.g., DeVore v. Marshack (In re DeVore),* 223 B.R. 193
, 198 (9th Cir. BAP
1998); *Abbott
v. Daff (In re Abbott),* 183 B.R. 198
, 200 (9th Cir. BAP
1995); *United
States v. Germaine (In re Germaine),* 152 B.R. 619
, 624 (9th Cir. BAP 1993)."
SEE:
IN RE MENK
Email | Print
| Comments (0)

The post was migrated from Yahoo.
Post Reply