When you initiate a bankruptcy case, or someone initiates one against you, you may disagree with the judge's ruling. That is especially so if you have lost the case. In this case, you can request the judge to review their decision by filing a motion to reconsider. However, there are various things you should know when filing your motion to stand a chance of acquiring the best outcome, as this blog explains. Most importantly, you need help from a skilled bankruptcy lawyer.

What a Motion for Reconsideration Means

A motion to reconsider is a legal petition appealing a bankruptcy judge's decision. The motion requests the judge to review a decision they reached in a bankruptcy case and reexamine the reasons that led them to issue that decision. It allows creditors and debtors to ask the judge to reverse a past decision.

A motion to reconsider is an option if new evidence has emerged. It can also apply if there were mistakes in considering facts or applying the law at the initial proceedings. Note that a motion to reconsider will not make a court reargue the bankruptcy case afresh. They are regulated under strict timelines and standards.

There are various reasons for bringing a motion for reconsideration. Based on the motion, the judge can:

  • Send the case back to the trial court.

  • Reverse their decision.

  • Vacate a bankruptcy court order.

You have to move fast in filing your motion to reconsider. That is because bankruptcy courts have strict timeframes for bringing motions. The judge will reconsider your motion based only on a few factors. One primary factor is whether granting the motion will serve the interests of justice.

When deciding on a motion to reconsider, judges focus on balancing the interests of justice and the finality of an order. Thus, judges grant these motions sparingly since it is deemed an extraordinary remedy.

When deciding whether or not to grant a motion to reconsider, judges often lean toward denying them. The standards courts have set concerning these motions are strict and demanding. However, rarely, when an injustice can only be avoided through granting reconsideration, a judge will likely grant it if the circumstances are extraordinary.

When To Bring a Motion To Reconsider

Bankruptcy courts provide a brief timeline for appealing a ruling. The Rules of the Bankruptcy Code are the same as those of the FRCP (Federal Rules of Civil Procedure). However, the time limits that the bankruptcy code sets often differ.

For example, per the Bankruptcy Code, you must bring a motion to amend or alter a judgment or for a new trial within fourteen days from when the judge enters a final order. You could file a motion to prolong the deadline if you believe you cannot file your appeal in the stipulated time. There are few exceptions to the stipulated strict deadlines.

You can bring a motion to reconsider in these scenarios:

  • Legal mistakes: If the judge misapplied or misinterpreted the statute in their original ruling, a motion to reconsider enables you to submit legal precedents and arguments that clarify the mistake. If, for example, a judge misapplied Bankruptcy Code provisions, you may file a motion requesting a correction.

  • New evidence: You might have a basis for reconsideration when you have found new evidence unavailable during the first court hearings. This is especially so when that evidence may significantly affect the case outcome. Note that evidence should be new, not merely a varying interpretation of the existing facts.

  • New facts: Let us say the judge never considered all the facts when entering a judgment on the case. In this case, the unconsidered facts can create the foundation for filing a motion to reconsider. If the court judge never considered crucial facts on record when issuing the initial ruling, you can bring the facts to light when you request the court to reconsider its decision. To prove the judge never considered facts in their initial decision, you should point to the lack of those facts in their final decision. You should also state that the facts were in the record before filing the motion.

  • Manifest injustice or clear error: If the judge's decision led to a grossly unfair injustice or contained apparent mistakes, you may request the judge to reconsider their ruling. This may involve mistakes in fact-finding and a case where the judge overlooked critical evidence.

Other circumstances under which you can bring this motion include:

  • The judgment has been satisfied, released, or discharged (depending on an initial ruling that was vacated or reversed or applying it is no longer equitable).

  • The judgment is void.

  • There was misconduct, misrepresentation, or fraud in the case.

  • There were excusable neglects or mistakes committed during the trial.

Sometimes, the introduction of a new bankruptcy law also creates the foundation for a motion to reconsider. Often, a judge might not base their decisions on the correct points of law. That could be because the issue is not properly briefed. It could also be because the court made an error in comprehending the legal problems involved in the issue. Bankruptcy courts have a legal duty to comply with the law. Thus, if you can prove a decision contradicts the law, you can ask the judge to reconsider their decision.

Additionally, the law constantly changes, and a judge might not be aware of some of those changes. For example, laws are often passed that can affect several legal matters. If you can prove a new law was enacted that could have affected the judge's decision, a motion to reconsider will likely be successful.

The court can grant your motion to reconsider after verifying that one or more of the above circumstances is true. If a bankruptcy court closes your case, it can reopen it to grant you relief, administer assets, or due to other reasons. According to the United Bankruptcy Code, lenders, debtors, or other parties of interest can bring a motion to reconsider.

What to Include In Your Motion

Check your bankruptcy court's website. It might have forms you can utilize to compile your motion to reconsider. Generally, your motion must include at least the following:

  • Your name as the moving party or appellant.

  • The topic of your appeal.

  • The reasons for your appeal.

  • All other parties involved.

  • Date and signature.

Apart from the above, you must support your reason or reasons for bringing the motion. Your motion must include a memorandum briefly explaining the court decisions or matters that form the foundation for reconsideration.

In addition, you must possess valid grounds for wanting the judge to change their decision in your case. For example, if the court ruled depending on a lender's misrepresentation, you could appeal its decision with corroborating evidence. However, claiming you wish the judge to reconsider merely because you did not like the ruling will do you no good.

Legal Standards Governing Motions to Reconsider

Motions to reconsider are governed under Rule 9024 and Rule 9023 of the Federal Rules of Bankruptcy Procedure. Rule 9023 outlines the same rules for a motion for a new trial per FRCP 59. Rule 9024 provides standards for relief from judgment per FRCP 60. Here is an overview of the rules:

  • Bankruptcy Rule 9023: According to this rule, a person must file a motion within two weeks of the judge's original ruling. The rule mainly exists to rectify legal mistakes or submit new evidence that may not have been presented earlier via due diligence.

  • Bankruptcy Rule 9024: This rule gives a more extended timeframe for bringing motions founded on fraud, newly found evidence, or other bases that warrant reconsidering a judgment. Nonetheless, this statute is not a substitute for an appeal.

If you seek reconsideration of an order in bankruptcy court, you can file either:

  • A motion to amend or alter a judgment under Rule 9023 if the order is interlocutory or

  • A motion for relief from judgment under Rule 9024 when the order is final.

The relevant rules for motions to reconsider differ depending on whether the motion is for a final or interlocutory order. Various policies surround both kinds of motions for reconsideration, which have assisted in defining what rules apply to each motion.

Bankruptcy courts hold motions to reconsider to higher standards. That is because reconsideration does not allow expressing discontent with the ruling’s outcome or rearguing the same evidence. Instead, it is meant to address new developments or grave mistakes.

How to File the Motion

When bringing your motion to reconsider, you must explicitly explain the reasons for filing and corroborate it with new evidence or legal arguments. The main steps entailed in the filing process are:

  • Reviewing the initial decision: Before you file, carefully assess the judge's initial ruling. Identify overlooked critical evidence or specific mistakes. This will assist you in structuring a well-founded argument.

  • Gathering legal precedents or new evidence: If you discover new evidence, ensure it applies to the case. Also, the evidence must have been unavailable when the judge issued the initial ruling. Likewise, if you assert that the judge misapplied a law, submit reliable legal precedents.

  • Drafting your motion: Ensure you write a brief and explicit motion. Explain the basis for reconsideration. Also include all applicable evidence, legal arguments, and facts. Ensure you file the motion within the stipulated time frame.

  • Serving your motion papers to the opposing parties and the court: Submit the papers to your bankruptcy court. Also, give copies to every interested party, including trustees and lenders.

  • Preparing for the court hearing: Once you file, the court may schedule a hearing, which you must attend to argue your case. Prepare yourself to explain why you think the judge should reconsider their decision depending on the reasons you presented.

The United States Courts utilize an online case management system for motions filing. You can file your motion using the (CM/ECF) Case Management/Electronic Case Files system. After you access this system's primary menu, click on the bankruptcy section. Then maneuver to Applications/Motions and key in your docket’s case number. Move down to reconsider. Choose the party filing. You could associate a PDF file with Reconsider and then follow the prompts. Refer to your bankruptcy court website for assistance with online motion filing.

Mistakes You Should Avoid

When bringing a motion to reconsider, there are mistakes you should avoid, as they may result in the judge denying the motion. These are:

  • Missing deadlines: Failure to file your motion within the stipulated time frame could be detrimental. Ensure you comprehend the deadline to bring your motion under the applicable rule.

  • Failure to submit relevant evidence: Any evidence you submit must be applicable, new, and factual to the case outcome. Arguments contingent on irrelevant evidence or hypothetical scenarios will not satisfy the court's standards.

  • Reusing old arguments: Rearguing the same assertions you argued in the initial hearing will unlikely lead to reconsideration. You have to submit legal errors, new evidence, or manifest injustice.

You could appeal the court’s decision if it denied your motion for reconsideration. Usually, appeals are more formal and entail reviewing the whole case for mistakes. To file an appeal, you must strictly comply with procedural rules. For example, you have 14 days from when the court issued its judgment to file your appeal. Also, remember that appeals could be time-consuming and complex. If the appellate court denies your appeal, you could take your case to the Supreme Court by filing a petition.

Motion for Reconsideration Applies to All Bankruptcy Cases

There are various types of bankruptcy chapters in California. Chapters 7, 11, and 13 are the most common. Chapter 7 bankruptcy permits you to discharge some of the unsecured debts, like medical bills and credit. Chapter 11 bankruptcy mainly applies to businesses. This chapter often helps businesses to reorganize their debts and stay in operation. They will have the chance to cut costs, establish plans for profitability, and find other ways to increase revenue. Chapter 13 is a reorganization bankruptcy. It allows individuals and businesses with consistent income to develop repayment plans for three to five years.

Other bankruptcy chapters are Chapters 9, 12, and 15. Chapter 9 applies to towns, cities, taxing districts, villages, school districts, and municipal utilities. It allows these institutions to reorganize their debts. Chapter 12 provides debt relief to fishermen and family farmers. Chapter 15 applies to bankruptcy filings involving parties from multiple countries.

A motion to reconsider applies to cases under any of these chapters. For example, under Chapter 13 bankruptcy, you can file a motion of reconsideration requesting the judge to deny a plan modification, rule on a particular claim, or dismiss the case. The same complex rules and standards apply across all chapters. So, whatever chapter of bankruptcy you have a case under, you want to consult an experienced bankruptcy lawyer for help.

How a Bankruptcy Attorney Can Help You With Your Motion

As mentioned, judges hold motions to reconsider to higher standards. Plus, these motions are governed by bankruptcy laws and federal procedural rules that may be intricate to understand as a layperson. So, navigating one requires extensive comprehension of every applicable rule and law. A lawyer will come a long way in this case. They can help you file and succeed in these motions in various ways. These include:

  • Interpreting every little detail of relevant laws and rules and how they apply. An attorney will help you understand legal jargon to comprehend the case better and avoid making mistakes.

  • Assessing whether your case has merits. A lawyer will assist you in determining whether your reasons for filing the motion are valid enough. If they are not, they will scrutinize the case more to determine whether there are valid reasons you missed so you can proceed with filing.

  • Mounting a solid case. A lawyer can help you draft a strong motion that the judge will likely grant. They will help you collect the necessary evidence and legal precedents. They can also help you argue your motion and increase your chances of winning.

  • They will help you avoid common mistakes and comply with all procedural requirements. A lawyer will advise you every step of the way. They will tell you what to do and not do to avoid acting in a way that can jeopardize your case.

Find an External Bankruptcy Attorney Near Me

A motion for reconsideration is a crucial tool in bankruptcy cases. It ensures fairness in bankruptcy court proceedings since it allows correction of errors and the consideration of new evidence that could make a significant difference. However, do not take these motions lightly. You must understand deadlines and legal standards and have valid reasons for reconsideration. For this, you need a skilled bankruptcy lawyer by your side.

Consulting a lawyer and carefully drafting your motion will increase your odds of recovering the best outcome. If you are looking for help filing a motion to reconsider or have concerns or questions about another aspect of bankruptcy, we at San Diego Bankruptcy Attorney can help. We understand navigating bankruptcy cases can be intricate and are ready to guide you through every possible complexity. We are devoted to helping our clients reach the most favorable resolution. Call us today at 619-488-6168 for a consultation.