11 U.S.C. § 350(a)
provides that the court shall close a case when it is “fully
administered”. Neither the Bankruptcy Code nor the rules provide
an explicit procedure,however, for closing a chapter 11 case. Further,
when a Chapter 11 case is closed, the court must provide information
on payments made during the case to the Administrative Office of the
U.S.
Courts. It is often difficult, if not impossible, for the court to obtain
this information from the record.
The closing procedure will be initiated by the filing of a motion for
entry of a final decree and closing report. Here are the steps that
should be
taken:
1. A party in interest (usually, but not necessarily,
the plan proponent) must file the following documents with the court:
a. A Motion
for Entry of Final Decree and Notice of Creditors of
opportunity to object to entry of a final decree.
b. A Chapter
11 Closing Report from the debtor [trustee or disbursing
agent as may be appropriate].
2. Copies of the Motion for Final
Decree and Chapter 11 Closing Report should be served on the following
parties: Office
of the
US Trustee,
trustee [if any], secured creditors, administrative expense
creditors, the IRS,
State of Hawaii, the 20 largest unsecured creditors [or
committee if
one has been appointed], and all parties who have filed
a request for notice.
A copy of the proposed final decree should be served on
the Office of the United States Trustee.
3. If no objection is filed within
30 days after service of the documents noted above, the moving party
should then file
a
proposed
final decree.
For one possible form, see 11 Collier on Bankruptcy (15th
ed.)
Part 6.
If no objection is filed to the final decree, the
final decree will be entered and the case will be closed approximately
10 days
later. |