Practices and procedures of the Bankruptcy Court, Western District

By Roberta Gubbins Legal News Bankruptcy practioners and trustees attending the January ICBA Bankruptcy section meeting on Jan. 12 came from as far away as Grand Rapids to learn the procedures and practices of the Bankruptcy Court, Western District from Chief Justic James D. Gregg. "My goal as a judge, first and foremost, is to follow the law and listen to the facts," said Gregg, opening the session at the State Bar Building in Lansing, "and apply them to each case. I am a real believer that the facts will drive the law." Gregg tries "to be efficient" in the way he manages his court. "The bankruptcy bar in the Western District is a fabulous bar and most everybody is civil and cordial. My advice to you is that you are not going to win a case by insulting anybody in court. You win a case by being an effective communicator." Gregg introduced his staff Shelli Combs, his judicial assistant, Jessie Koerth, calendar clerk and Carrie Foster, career law clerk. He recommended that lawyers call them if they have questions. "Dan LaVille," he said, "is the Court Clerk and is very approachable." Gregg first discussed Motion Days. Adjournments do not have to be in writing. A telephone call to Jessie Koerth is sufficient if the request is no later than 2:00 p.m. the before. "I am assuming you have spoken to the other counsel and trustees. The only problem is on first hearing where there have been notices sent to all the creditors who may appear." With status conferences or evidentiary hearings the rules require that the court let parties know when evidence is being presented. "Typically on hearings, the first hearing -- don't bring witnesses -- if I can decide the matter on stipulated facts and the law, I will do so." If more time is needed, time for a longer hearing will be scheduled. He tries to keep the shorter hearings in the city where the case was filed. If longer than an hour, it will be "in Grand Rapids." Gregg delivers bench decisions whenever possible. While he does the research in advance, he will listen to the arguments of the lawyers and believes that "hearings are important Reaffirmation Procedures: It is Gregg's view that debt involving collateral can be reaffirmed, especially on cars and houses. While he will generally allow reaffirmations on those items, he "will always deny reaffirmation on motor cycles, wave runners, campers, ATVs, RVs, anything recreational." A checklist for reaffirmations is available from the court. He noted that if the budget has changed, it is possible to re-submit it. The checklist, which may include handwritten notes will be scanned in and put on the docket. The order approving the reaffirmation agreement includes the statement that the approval is depended on the "Creditor holds a valid enforceable nonavoidable security interest or mortgage in the Debtor's property." If it does not exist, the agreement is void ab initio or from the beginning. Judge Gregg has an educational policy in his court stating that lawyers who practice before him shall attend at least six hours of bankruptcy education during a calendar year. When a lawyer chooses not to attend a bankruptcy seminar, the judge will often hold hearings regarding lawyer's fees. He keeps an education list of those who attend seminars. "It is my assumption that everyone on the list is a competent bankruptcy attorney," he said. Pre trials in Judge Gregg's court are not on the record unless one party is pro se. Trials are held in Grand Rapids. The final pretrial order will establish deadlines and outline procedures for filing of witness lists, exhibits and trial briefs. At trials, said Judge Gregg, "My job is to listen to you present your case and to help the parties know the law." Judge Gregg had the following comments regarding orders: * Those submitting orders must wait the required notice period (+7 days) before filing the affidavit and proposed order. * Orders after the hearing should include in the preamble the hearing date and city where the hearing took place. * Settlements: Proposed orders must recite the terms and agreements of the stipulation or settlement. The order must stand alone. If the parties agree before a scheduled hearing, the terms and provisions must be placed on the record in open court. * Relief from a Stay: Proposed order must list collateral--a VIN for vehicles and a legal description and address for real property Copies of the handouts with detailed instructions for Judge Gregg's court are available upon request. James D. Gregg is Chief Judge for the United States bankruptcy court, Western District of Michigan. Gregg attended Michigan State University for his Bachelors Degree and earned a Masters Degree from Central Michigan University. He graduated cum laude from Wayne State University Law School for his Juris Doctor. Published: Fri, Jan 27, 2012

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