Consolidate (Motion)

12/15/2015

 

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.  

 

Once separate cases have been consolidated, they are treated as one case for all purposes.  Thus, there will be a single case number, caption and claims register along with a single docket.

 

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

 

There are three types of consolidations:

 

Consolidation:

The first type of consolidation is accomplished pursuant to Fed. R. Bankr. P. 1015.   This type of consolidation involves the joining of two or more cases/estates together for all purposes, including combining assets and liabilities of separate estates into a single pool to pay creditors.  Typically this type of consolidation will involve separate voluntary petitions filed by a husband and wife, a voluntary and an involuntary petition relating to the same debtor, or two involuntary petitions against the same debtor.

     

    Substantive:

    A substantive consolidation is a complete joining of estates, (whereas the debtors are not spouses), for all purposes, including combining assets and liabilities of separate estates into a single pool to pay creditors.   Substantive consolidation usually occurs between a parent corporation and its affiliates, or when the affairs of two debtors are so intertwined that the cases cannot be separated.

       

      Joint Administration:

      Combining of two or more cases in the interest of efficiency and economy.  Involves the use of a single docket for matters occurring in the administration of the combined estates.  It does not involve the combining (pooling) of assets and liabilities of the separate estates.  

       

      Note:

      The Motion to Consolidate must be filed in both the LEAD case and the MEMBER 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  

       

      21 Day Notice to creditors/parties in interest

       

      Proposed Order

      Proposed Order

      Proposed Order