In re Hernandez-Castro, 16-63886-PMB

• Court: United States Bankruptcy Courts. Eleventh Circuit. U.S. Bankruptcy Court — Northern District of Georgia
• Writing for the Court: PAUL BAISIER, U.S. BANKRUPTCY JUDGE
• Parties: IN RE: VICTOR MANUEL HERNANDEZ-CASTRO and ANDREA LASHAE HERNANDEZ, Debtors.
• Docket Number: 16-63886-PMB
• Decision Date: 21 April 2022

IN RE: VICTOR MANUEL HERNANDEZ-CASTRO and ANDREA LASHAE HERNANDEZ, Debtors.

No. 16-63886-PMB

United States Bankruptcy Court, N.D. Georgia, Atlanta Division

April 21, 2022

CHAPTER 7

ORDER DENYING WITHOUT PREJUDICE UNITED STATES TRUSTEE'S MOTION TO REOPEN BANKRUPTCY CASE

PAUL BAISIER, U.S. BANKRUPTCY JUDGE

Before the Court is the Motion to Reopen Bankruptcy Case (Docket No. 22)(the “Motion”) filed by the United States Trustee for Region 21 (the “U.S. Trustee”). The above-captioned debtors (the “Debtors”) filed a voluntary petition under chapter 7 of the Bankruptcy Code on August 9, 2016 (the “Petition Date”) and Jordan E. Lubin was appointed as the chapter 7 trustee (the “Trustee”). See Docket No. 1. On November 29, 2016, the Trustee filed a report of no distribution. Subsequently, the Debtors received their discharge and the case was closed. See Docket No. 20. On February 8, 2022, the U.S. Trustee filed the instant Motion, requesting the Court to reopen the above-captioned bankruptcy case and appoint a new chapter 7 trustee to administer any

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unscheduled assets that were property of the estate. The U.S. Trustee alleges that one of the Debtors, Andrea Hernandez, "is entitled to proceeds from the settlement of a product liability claim against a product manufacturer for physical injuries related to alleged exposure to the product" (the "Settlement Proceeds"). Motion, ¶ 5.

Section 350(b) of the Bankruptcy Code provides that "[a] case may be reopened in the court in which such case was closed to administer assets, to accord relief to the debtor, or for other cause." 11 U.S.C. § 350. "[T]he bankruptcy court retains broad discretion to reopen a closed case on a motion of the debtor or another party in interest." Slater v. United States Steel Corp., 871 F.3d 1174, 1186-87 (11th Cir. 2017). In exercising its discretion, the Court must balance the policy of a fresh start afforded to the debtor against the rights of affected creditors. In re Tarkington, 301 B.R. 502, 506 (Bankr.E.D.Tenn. 2003)(quoting In re Frasier, 294 B.R. 362, 366 (Bankr. D. Colo. 2003)). "Although a motion to reopen is addressed to the sound discretion of the bankruptcy court, the court in fact has a duty to reopen the estate whenever there is proof that it has not been fully administered." In re Upshur, 317 B.R. 446, 451 (Bankr. N.D.Ga. 2004).

The movant carries the burden of establishing that the bankruptcy case should be reopened. In re Environmental Wood Products, Inc., 609 B.R. 901, 912 (Bankr. S.D. Ga. 2019). "A bankruptcy case should not be reopened where it would be a futile exercise or a waste of judicial resources. . . . If a movant could not obtain the substantive relief it intends to seek upon...