Reinstating or Reopening a Dismissed Chapter 13 Case

How does reinstating a dismissed Chapter 13 case actually work?

You ask the bankruptcy court that dismissed the case to set aside its own dismissal order and put the case back on its docket. Districts label this differently. The Northern District of New York calls it a motion to vacate the order of dismissal and to reinstate the case, and directs that a granting order be titled "Order Vacating Order of Dismissal and Reinstating Case" (N.D.N.Y. LBR 1017-1). The Middle District of Pennsylvania simply requires that a motion to reinstate a dismissed case be in writing, and allows the court to grant it summarily (M.D. Pa. LBR 1017-1). The Western District of Missouri asks the debtor to file a motion to vacate the order of dismissal and to reinstate or reopen the case, using the court's local forms (W.D. Mo. LBR 1017-1). Practically, that means one motion, filed in the same case number, served on the parties your local rule identifies, explaining what went wrong and why it will not happen again.

• File in the original case, not as a new petition.
• Serve the trustee, creditors, and parties in interest as the local rule directs.
• Expect the court, not you, to prepare or approve the order in some districts.

What changes the answer for your case?

Three things drive the outcome more than anything else. First, why the case was dismissed. Dismissal for missed plan payments is treated differently from dismissal for failing to file documents or attend the meeting of creditors, and courts often publish separate rules for each. In the Eastern District of Missouri, a case dismissed for a missed installment fee payment, a missed section 341 meeting, or missing section 521 documents "will not ordinarily be reinstated," and the motion must show exceptional circumstances (E.D. Mo. L.R. 1017-2). Second, how much time has passed. Local rules commonly impose a short filing window. Third, whether the case has been closed as well as dismissed. Once the clerk closes the file, several districts require a motion to reopen before anything else can be filed. The Middle District of Alabama notes that upon dismissal, unless the debtor appeals or seeks reconsideration within ten days, the clerk will automatically close the case.

What does federal law say about dismissal and reopening?

Two Code sections do most of the work. Section 349 sets out what dismissal does: unless the court orders otherwise for cause, dismissal does not bar a discharge in a later case of debts that were dischargeable in the dismissed case, and does not prejudice the debtor as to filing a later petition, except as provided in section 109(g) (11 U.S.C. § 349(a)). Dismissal also reinstates superseded proceedings and avoided transfers and revests estate property in whoever held it before the case began (11 U.S.C. § 349(b)). Section 350 governs closing and reopening: after an estate is fully administered the court closes the case, and "a case may be reopened in the court in which such case was closed to administer assets, to accord relief to the debtor, or for other cause" (11 U.S.C. § 350). The companion rule states that on the debtor's or another party in interest's motion, the court may reopen a case under section 350(b) (Fed. R. Bankr. P. 5010).

• Section 1307 lists the grounds on which a Chapter 13 case may be dismissed, including failure to commence timely plan payments and material default under a confirmed plan (11 U.S.C. § 1307(c)).
• Reopening a case is not the same as undoing a dismissal, and the Code treats them as separate events.

Where do local and district rules differ?

This is where most of the real requirements live, and the differences are substantial. The Eastern District of Missouri gives a Chapter 13 debtor fourteen days after entry of an order granting the trustee's motion to dismiss for failure to make plan payments to file a motion to reinstate, and requires the debtor to have paid funds bringing payments current as of the motion date (E.D. Mo. L.R. 1017-3). The Southern District of Illinois requires the motion to state the reason for the missed payments and how the debtor proposes to cure the arrearage, and gives the trustee seven days to respond (S.D. Ill. LBR 1017). New York's Northern District requires the motion to state the circumstances that caused non-payment, what has changed, the date and manner of proposed future payments, and any new debt incurred since dismissal (N.D.N.Y. LBR 1017-1). Arizona addresses reinstatement in its dismissal rule as well (Ariz. LBR 1017-1). Check your own district's rule before assuming any of this applies. Find your court through the court finder.

• Filing windows can be as short as fourteen days after the dismissal order.
• Some courts will reinstate without a hearing if the trustee consents.
• Some courts prepare the order themselves; others require you to submit a proposed one.

What does this look like in practice?

A common sequence in a payment-default dismissal: the trustee moves to dismiss, the court enters a dismissal order, and the debtor has a short window to act. The debtor tenders enough money to the trustee to bring plan payments current, then files a motion to reinstate that states the amount and date tendered and how the funds were sent, plus whether the case has been dismissed and reinstated before (E.D. Mo. L.R. 1017-3). The trustee files a response saying whether it consents or opposes. If the trustee consents, the case may be reinstated without a hearing, and the court sends the order to everyone on the matrix. If the case had already been closed, the extra step comes first. The Southern District of Indiana states that if a dismissed case has been closed, a party seeking relief from the dismissal must first file a motion to reopen, and then file the motion for relief from the dismissal order.

• Reinstatement does not automatically revive every pending motion. In the Eastern District of Missouri, the movant must set any unresolved motion for hearing again.
• Deadlines may shift. The Southern District of Indiana modifies discharge-objection deadlines for cases dismissed and later reinstated (S.D. Ind. B-4004-4).

What documents, information, and fees are involved?

Expect the motion itself, a certificate of service, and in many districts a proposed order. Courts commonly want the motion to state why the default happened, what has changed, and the debtor's prior dismissal-and-reinstatement history with dates (N.D.N.Y. LBR 1017-1; S.D. Ill. LBR 1017). If the dismissal followed missing paperwork or an unpaid fee, districts commonly require the deficiency to be cured before or with the motion. On fees: a motion for relief from a dismissal order carries no fee in the Southern District of Indiana, but if the case is closed, a reopening fee applies to the motion to reopen. New York's Northern District points out that reopening a closed case requires the fee under 28 U.S.C. § 1930(b), and that the reopening fee equals the filing fee in effect for commencing a new case as of the reopening date. For reference, the Chapter 13 filing fee is $235 (28 U.S.C. § 1930(a)(1)(B)), plus a $78 administrative fee (Bankruptcy Court Miscellaneous Fee Schedule, Item 8).

• Motion stating the cause of default and the cure
• Certificate of service on the trustee, creditors, and parties in interest
• Proof that missing documents or fees have been cured, where applicable
• A proposed order, in districts that require one

What should you ask a lawyer about this?

The choice between reinstating and refiling is the central question, and it depends on facts a lawyer can weigh with you. Under 11 U.S.C. § 349(a), dismissal generally does not prejudice a later petition except as provided in section 109(g), so refiling is often available even where reinstatement is not. But a new case means new fees, a new plan, and a restarted timeline. Useful questions to bring: How long do I have under this district's local rule, and has that window already closed? Was my case dismissed with prejudice, and if so for how long? Is my case dismissed only, or dismissed and closed? What exactly must I pay or file before the motion will be considered? What happens to my creditors' collection efforts while the motion is pending? Is reinstating better than filing a fresh case given how far into the plan I got? A local bankruptcy attorney will know how your district's judges handle repeat reinstatements.

• Bring the dismissal order, the docket, and any trustee correspondence.
• Ask whether a wage garnishment or foreclosure has already restarted.
• Ask what your prior dismissal history means for a new filing.

Frequently asked questions

Is reopening the same as reinstating a Chapter 13 case?

No. Reopening under 11 U.S.C. § 350(b) reopens a case the clerk has closed so filings can be made in it. It does not undo a dismissal. The Southern District of Indiana states plainly that if the case has been dismissed, reopening will not grant relief from the dismissal order, and that both a motion to reopen and a motion for relief from the dismissal order must be filed.

How long do I have to file a motion to reinstate?

It depends entirely on your district's local rule, and the windows are short. The Eastern District of Missouri allows fourteen days after entry of the dismissal order for both payment-default reinstatements and reinstatements after dismissal for missing documents or a missed section 341 meeting (E.D. Mo. L.R. 1017-2; L.R. 1017-3). Other districts set their own timing. Check your court's rule immediately.

Does the automatic stay come back while my motion is pending?

Filing a motion does not itself restore the stay. The Middle District of Alabama's pro se guide explains that upon dismissal the automatic stay ends, allowing creditors to begin collecting on debts that were not discharged before the dismissal. The stay under 11 U.S.C. § 362 arises from a petition, so its status after a dismissal and any reinstatement is a question for a lawyer in your district.

Can I just file a new Chapter 13 case instead?

Often, yes. Under 11 U.S.C. § 349(a), unless the court orders otherwise for cause, dismissal does not prejudice the debtor as to filing a later petition, except as provided in section 109(g). A dismissal with prejudice changes this. Arizona's local rule states that unless the order says otherwise, dismissal with prejudice means the debtor is prohibited from filing another petition for 180 days (Ariz. LBR 1017-1).

What does the court want my motion to say?

Districts that publish content requirements ask for the same core facts. The Northern District of New York requires the circumstances that caused non-payment, what has changed so payments can now be made, the date and manner of proposed future payments, and any new debt incurred since dismissal (N.D.N.Y. LBR 1017-1). Several districts also require you to disclose prior dismissals and reinstatements with dates.

Is there a fee to reinstate or reopen?

It varies by district and by which motion you file. The Southern District of Indiana charges no fee for a motion for relief from a dismissal order, but a reopening fee applies if the case is closed. The Northern District of New York notes that reopening requires the fee under 28 U.S.C. § 1930(b), set at the filing fee in effect for a new case at the time of reopening. Nevada requires disclosure of any unpaid fees from the original case (Nev. LBR 5010).

Will a trustee be appointed again if my case is reopened?

Not automatically. In a reopened Chapter 7, 12, or 13 case, the United States trustee must not appoint a trustee unless the court determines one is needed to protect the interests of the creditors and the debtor, or to ensure the reopened case is efficiently administered (Fed. R. Bankr. P. 5010). Practice differs where a dismissal is vacated rather than a closed case reopened.

What happens to deadlines in my case if it is reinstated?

Courts commonly revisit them. The Eastern District of Missouri says that if a case is dismissed and reinstated, the court will determine whether deadlines need to be extended and will notify creditors and parties in interest (E.D. Mo. L.R. 1017-3). The Southern District of Indiana modifies the deadline for objecting to discharge in cases that are dismissed and later reinstated (S.D. Ind. B-4004-4).

Sources

• 11 U.S.C. § 349 — Effect of dismissal · official source
• 11 U.S.C. § 350 — Closing and reopening cases · official source
• Fed. R. Bankr. P. 5010 — Reopening a Case
• 11 U.S.C. § 1307 — Conversion or dismissal · official source
• 11 U.S.C. § 362 — Automatic stay · official source
• N.D.N.Y. LBR 1017-1 — Dismissed Case – Motion to Vacate Order of Dismissal and to Reinstate Case
• E.D. Mo. L.R. 1017-3 — Motions to Reinstate Following Dismissal on Trustee's Motion to Dismiss for Failure to Make Plan Payments
• E.D. Mo. L.R. 1017-2 — Motions to Reinstate Following Dismissal for Failure to File or Provide Required Documents or Attend § 341 Meeting
• S.D. Ill. LBR 1017 — Motions to Reinstate Following Dismissal on Trustee's Motion to Dismiss for Failure to Make Plan Payments
• M.D. Pa. LBR 1017-1 — Reinstatement of Dismissed Case
• W.D. Mo. LBR 1017-1 — Dismissal or Conversion of Case; Reinstatement or Reopening of Dismissed Case
• Ariz. LBR 1017-1 — Dismissal of Case
• Nev. LBR 5010 — Reopening Cases
• S.D. Ind. B-4004-4 — Modification of Deadline for Objections to Discharge
• Bankr. S.D. Ind. official page — Motion to Reopen Case
• Bankr. S.D. Ind. official page — Motion for Relief from Dismissal Order pursuant to Fed.R.Bankr.P. 9024
• U.S. Bankr. Ct. M.D. Ala., Consumer Pro Se Debtors Guide
• U.S. Bankr. Ct. M.D. Ala., Reopen v. Reconsider
• Bankr. D. Mass. official page — FAQs for Debtors
• 28 U.S.C. § 1930(a)(1)(B)
• Bankruptcy Court Miscellaneous Fee Schedule, Item 8

Related

• Find your local bankruptcy court
• Chapter 13
• The automatic stay
• Build your personalised roadmap
• Bankruptcy tools and screeners