Consolidate (Motion)

Rev. 5/25/2018

 

Consolidation of bankruptcy cases involves the joining of two or more cases together for all purposes, including the combining of assets and liabilities of separate estates into a single pool to pay creditors.  It should not be confused with the consolidation of proceedings for joint trial or hearing as provided in Fed. R. Bankr. P. 7042.  

 

Do not use this event to request joint administration.  See: Joint Administration

 

The moving party must file the motion to consolidate in the lead and member cases.

 

 


 

Consolidation:

Most common consolidation type of consolidation.

The first type of consolidation is accomplished pursuant to Fed. R. Bankr. P. 1015.   This type of merger 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, 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/entities and the least common type of consolidation.

 

A substantive consolidation merges the assets and liabilities associated with two bankruptcy estates (generally business debtors/entities) for all purposes, when the affairs of two debtors are so intertwined that he 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:

EE Cases

KMS Cases

NPO Cases

Motion with Certificate of Service

Motion with Certificate of Service

Motion with Certificate of Service

21 Day Notice to creditors/parties in interest

21 Day Notice to creditors/parties in interest

Set Hearing - Substantive Consolidation Only  

 

21 Day Notice to creditors/parties in interest

 

Proposed Order

Proposed Order

Proposed Order