Closing Case Without Discharge

Last Updated: February 2023

The Court may close an individual chapter 7 case or chapter 13 case without entry of the discharge if the debtor does not complete an instructional course in personal financial management as required by Fed. R. Bankr. P. 1007(b)(7).  The Court may also close an individual chapter 12 or 13 case if the debtor does not provide certification of payment of domestic support obligations.

• Financial Management Course.

• Chapter 12 Certification of Domestic Support Obligations

• Chapter 13 Certification of Domestic Support Obligations.

Note: If the debtor(s) subsequently file(s) a Motion to Reopen Case to allow for the filing of the certificate(s), the debtor(s) must pay the full reopening fee due for filing the motion and file Motion for Entry of Discharge.

DO NOT CLOSE A CASE WITHOUT ENTRY OF DISCHARGE UNLESS DIRECTED TO DO SO BY THE CHIEF DEPUTY CLERK OR DESIGNEE.

Step-by-Step Procedures:

Determine if case is ready for closing.

1. • Chapter 7 - No Asset:  Can be closed after the 341 meeting has been held; no asset report is filed (must be filed at least 30 days prior to closing); time to object to discharge has expired; time to file certificate of financial management course has expired; there are no pending appeals, adversaries, motions, or applications; and it has not yet been 30 days from filing of Notice to Creditors of Amended Schedules.

   • Chapter 7 - Asset:  Can be closed after the Trustee files the Chapter 7 Trustee's Final Account (must be filed at least 30 days prior to closing); time to object to discharge has expired; time to file certificate of financial management course has expired; there are no pending appeals, adversaries, motions, or applications; and it has not yet been 30 days from filing of Notice to Creditors of Amended Schedules.

   • Chapter 13 - Case Confirmed:  Can be closed after the time has run to file an objection (30 days) to the Trustee's Final Report and Account; time to file the certification of domestic support obligation has expired; time to file certificate of financial management course has expired; there are no pending appeals, adversaries, motions, or applications; and it has not yet been 30 days from filing of Notice to Creditors of Amended Schedules. 

   • Chapter 12:  Can be closed after the time has run to file an objection (30 days) to the Trustee's Final Report and Account; time to file the certification of domestic support obligation has expired; there are no pending appeals, adversaries, motions, or applications; and it has not yet been 30 days from filing of Notice to Creditors of Amended Schedules.

Docket [Bankruptcy > Court Events > Case Closed without Discharge].

1. • Clear any existing flags.

   • Terminate pending deadlines (if appropriate). Terminate pending documents (if appropriate).

   • Pick "O" (Discharge Withheld for Failure to Submit Certificate of Instructional Course for Personal Financial Management) or "P" (Discharge Withheld for Failure to Comply with Domestic Support Obligation).

   • After the docket event has been entered, select the form "ntcclsno".  The form requires a check mark in one or both boxes and the deputy clerk's name.  This form is automatically sent to all creditors through BNC.

If only one debtor  is entitled to discharge in a joint bankruptcy case, and the joint debtor is not entitled to discharge due to not filing a Certificate of Financial Management Course and/or Domestic Support Obligation, under Utilities > Create Test Form > ntcclsno create the form Notice of Case Closed Without Discharge and use Adobe to modify.  (sample attached).  

Docket [Bankruptcy > Court Events > Notice of Case Closed Without Discharge], enhance docket entry to show which debtor is not receiving a discharge, attach your PDF, then send to all creditors via BNC.

Check the BNC queue that form went out to all creditors.  If not, use the docket event [Bankruptcy > Court Events > Send Document/Notice to BNC for Service].

The docket event Close Bankruptcy Case is not used in this circumstance.

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