Eastern District of Michigan Bankruptcy Court Seeks to Clarify Recent Local Court Rule Changes
As I have discussed here and on my firm’s website, the U.S. Bankruptcy Court for the Eastern District of Michigan (which covers Detroit, Bay City, and Flint) has recently enacted a number of changes to its local court rules. In order to assist Michigan bankruptcy attorneys in understanding at least some of the recent changes – particularly, those relating to the calculation of time for various court and rule-imposed deadlines – the court posted a Chart Summarizing Local Rules Changes on its website on November 25, 2009. The chart contains an introductory paragraph which explains its purpose as follows: “After the Supreme Court adopted the amendments to the Federal Rules of Bankruptcy Procedure, the Rules Committee of the Advisory Committee to the Bankruptcy Court for the Eastern District of Michigan reviewed the Local Bankruptcy Rules to recommend any necessary revisions to conform the Local Rules to the amendments to the Federal Rules
of Bankruptcy Procedure. … The amendments to the Local Rules become effective December 1, 2009, the same date as the amendments to the Federal Rules of Bankruptcy Procedure. The chart below indicates the adjustments in days that will occur with respect to each amended Local Rule.”
Other recent procedural changes in the Eastern District of Michigan include a September 29, 2009 “Notice Regarding Dismissal of Case for Failure to File Petition Pursuant To 11 U.S.C. § 301 (a).” 11 U.S.C. § 301(a) states that a “voluntary case under a chapter of this title is commenced by the filing with the bankruptcy court of a petition under such chapter by an entity that may be a debtor under such chapter.” The notice recently issued by the Court states: “Effective immediately, the Court will dismiss any electronically filed case in which the petition is not filed as the lead event. Pursuant to 11 U.S.C. § 301(a), a voluntary case is commenced by the filing of a petition. If the voluntary petition is not associated with the initial entry, no case exists, therefore, the filing will be dismissed.”
The Eastern District of Michigan also recently adopted a new form for reaffirmation agreements. The form is required for all reaffirmation agreements filed on or after December 1, 2009. Failure to file the reaffirmation agreement cover sheet with a reaffirmation agreement will result in a notice of deficiency from the Bankruptcy Court Clerk providing seven days within which to correct the deficiency. Failure to correct the deficiency may result in striking the reaffirmation agreement or the scheduling of a hearing by the Court.
Detroit bankruptcy lawyers must be aware of these notices as well as other local rules and practices in the Eastern District, while bankruptcy attorneys in other jurisdictions should review their local court rules for similar changes. The Eastern District of Michigan’s recent notices emphasize both the procedural complexity of bankruptcy cases and the need for competent counsel.

