Respondents Closely Divided over Bankruptcy Courts Having Jurisdction to Reopen Cases That Have Been Dismissed
Respondents Closely Divided over Bankruptcy Courts Having Jurisdction to Reopen Cases That Have Been Dismissed
Contact: John Hartgen
703-739-0800
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RESPONDENTS
CLOSELY DIVIDED OVER BANKRUPTCY COURTS HAVING JUSRISDICTION TO REOPEN
CASES THAT HAVE BEEN DISMISSED IN LATEST
May 18, 2007, Alexandria, Va. —Results of a recent American Bankruptcy Institute online poll showed that respondents were closely divided over whether or not bankruptcy courts have subject matter jurisdiction to reopen a bankruptcy case that has been dismissed. The largest number of respondents (45 percent) agreed that bankruptcy courts have jurisdiction under Bankruptcy Code §350(b) to reopen a bankruptcy case that has been dismissed and terminated pursuant to §349, even if the case has never been administered, completed or formally closed. Section 350(b) authorizes the bankruptcy court to reopen a case for various reasons including to 'administer assets, to accord relief to the debtor, or for other cause. 'Thirty-two percent “strongly agreed” and another 13 percent “agreed somewhat.”
Twenty-four percent of respondents did not think that bankruptcy courts have subject matter jurisdiction to reopen a case under §350(b) when that proceeding has been dismissed and terminated pursuant to §349. Nineteen percent “strongly disagreed,” while another 5 percent “disagreed somewhat” that under §350(b) the courts had subject matter jurisdiction to reopen a case. Twenty-eight percent of respondents “did not know or had no opinion.”
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