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Is It Ever Too Late To Reopen To Avoid Judicial Lien?

3/15/2016 | Andrea O'Connor
aoconnor@hendelcollins.com

Consumer debtor attorneys often ask to reopen a bankruptcy to seek to avoid judgment liens under 11 U.S.C. Sec. 522(f). But what if your judge denies the motion to reopen? In In re Yonish, Case No. 15-8006 (6th Cir. BAP March 3, 2016) the bankruptcy judge denied such a motion because a two year delay was too long and prejudicial. The BAP reversed because delay alone did not equal prejudice, Section 350 had no time limit, and prejudice could not be presumed solely due to delay. The decision contains a concise recitation of the standard for motions to reopen under Section 350.

http://www.ca6.uscourts.gov/opinions.pdf/16b0004n-06.pdf

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