Consolidate (Motion)

Rev. 1/15/2019

 

 

Consolidation of bankruptcy cases involves the joining of two or more cases for all purposes, including the combining of assets and liabilities into a single pool to pay creditors.

 

Filers should not use the below event to request joint administration.  See: Joint Administration

 

The movant must file the motion to consolidate in the lead and all member cases.

 

 


Consolidation  See Fed. R. Bankr. P. 1015




Consolidation  See Fed. R. Bankr. P. 1015


 

The most common type of consolidation.

This type of consolidation involves the joining of two or more cases (estates) for all purposes, including combining assets and liabilities into a single case (lead case) to pay creditors.  

 

After consolidation, the parties must file all future pleadings, documents, and proofs of claim in the lead case.

 

Generally, this type of consolidation involves:

 

  • separate voluntary petitions filed by individuals who are legally married;

  • a voluntary and an involuntary petition relating to the same debtor; or

  • two involuntary petitions against the same debtor.

 



Substantive Consolidation


 

 

Generally for business debtors and it is the least common type of consolidation.

 

A substantive consolidation merges the assets and liabilities associated with two bankruptcy estates (generally business debtors) for all purposes, when the affairs of two debtors are so intertwined that the cases cannot not separate.   

 

After consolidation, parties must file all future pleadings, documents, and proofs of claim in the lead case.

 

 

Docket Event:

 

[Bankruptcy> Motions/Applications> Consolidate]

 

Requirements:

 

KMS Cases

NPO Cases

Motion with Certificate of Service

Motion with Certificate of Service

21 Day Notice to creditors and parties-in-interest

Set Hearing - Substantive Consolidation Only  

 

21 Day Notice to creditors and parties-in-interest

 

Proposed Order

Proposed Order