Local Rule RULE 1015-1: Joint Administration and Consolidation.
Bankr. D. Mont. — General rule
RULE 1015-1. Joint Administration and Consolidation.
(a) Joint Administration. A motion seeking the joint administration of the cases of two or more related debtors shall be made pursuant to Fed. R. Bankr. P. 1015(b).
(b) Consolidation. A motion seeking to consolidate two or more cases shall, if granted, result in the substantive consolidation of such cases for all purposes unless otherwise ordered by the Court. The debtors' estates shall be consolidated in a case jointly filed by a married couple unless the Court orders otherwise.
Related Authority: 11 U.S.C. § 302 Fed. R. Bankr. P. 1015 and 2009 Comment: While joint administration is contemplated and provided for in the Fed. R. Bankr. P., the substantive consolidation of the estates of separate debtors is not. Consolidation of non-related parties is not mentioned in the Bankruptcy Code or Rules. As noted in the Advisory Committee Notes under Fed. R. Bankr. P. 1015, consolidation, as distinguished from joint administration, "is neither authorized nor prohibited by this rule since the propriety of consolidation depends on substantive considerations and affects the substantive rights of creditors of separate estates." Consolidation is a judicially created doctrine, which must be expressly sought, and the grounds therefore proven. Trustee or debtor in possession must keep separate accounts of the property and distribution of each estate being jointly administered as required under Fed. R. Bankr. P. 2009(e).