Rev. 7/07/2021
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
|
|
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:
|
Substantive Consolidation
|
|
Generally for business debtors. Substantive Consolidation 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]
Notice Docket Event:
[Bankruptcy > Notices > Notice - 21 day]
Requirements:
|