Local Rule 7041-2: Dismissal of Related Title 11 Case

7041-2. Dismissal of Related Title 11 Case.

(a) Except as provided in the following subsection, whenever a bankruptcy case is dismissed, any pending related adversary proceeding which a final judgment has not been entered will be closed unless a party files a motion seeking continuation of the adversary proceeding within 21 days of case dismissal.

(b) If the pending related adversary proceeding was removed from another court, it will be remanded to that court upon dismissal of the underlying bankruptcy case unless a party files a motion seeking continuation of the adversary proceeding in this Court within 21 days of case dismissal.

(c) A party seeking continuation of an adversary proceeding under this rule may move for judgment or dismissal before the adversary proceeding is closed or after entry of an order reopening a closed adversary proceeding.

(d) If the debtor files another Petition for Relief under Title 11 within 90 days following entry of the order dismissing the prior case, any plaintiff whose adversary proceeding was closed under this rule may move to have it reopened and made applicable in the new case, as though the adversary proceeding were originally filed in the new case.