(6th Cir. B.A.P. Mar. 3, 2016)
The Sixth Circuit B.A.P. reverses the bankruptcy court’s denial of the motion to reopen the bankruptcy case to avoid judicial liens. The debtor’s counsel reported that attorney error resulted in the cases being closed prior to avoidance of the liens. No creditors objected to the motion, but the bankruptcy court found that the delay in filing the motion to reopen (two years after the case was closed) warranted denial of the motion. The B.A.P. holds that the bankruptcy court erred by finding prejudice solely based on the delay. A showing of actual prejudice was necessary. Opinion below.
Author: Matt Lindblom