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Local Rule 1017-2 – Dismissal of Bankruptcy Cases

Wed, 06/20/2018 - 11:43am

Our court, along with many others around the country and most of those in the 4th Circuit, previously employed a procedure for dismissal of bankruptcy cases upon certification by the Clerk of Court, the United States trustee or a trustee of certain deficiencies. The 4th Circuit, in the recent case of No v. Gorman, 891 F3d. 138 (4th Cir. 2018), noted the notice and opportunity for hearing requirement of sections 707(a), 1112(b), 1208(c), and 1307(c). In light of this decision the Court has adopted the attached operating order revising our local rules and adopting procedures consistent with No v. Gorman.

In short, rather than the certification of dismissal procedure previously permitted under the local rules, dismissal will now be considered upon a Rule to Show Cause or motion. The opportunity for a hearing (self-scheduled by the Clerk, UST or trustee) is thus available, however the case may be dismissed without a hearing, consistent with our general passive notice procedure, unless a timely response is interposed.