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Bankr. E.D.N.C.: In re John Doe- Expungement of Bankruptcy

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By Ed Boltz, 13 February, 2012
Summary: Kenneth Jones filed a Chapter 13 bankruptcy on behalf of his minor nephew in 2003.  After finding no evidence that Jones was his nephew's court appointed guardian, the Trustee moved for the appointment of a guardian ad litem pursuant to Bankruptcy Rule 1004.1.  Prior to that motion being heard, however, the case was dismissed for non-payment. Recently, however, the Nephew (now presumably having reached his majority) experienced difficulties obtaining credit due to this bankruptcy.  Accordingly then moved to have the bankruptcy re-opened and then dismissed ab initio, After finding there was just cause to re-open the case, the Court found that dismissal ab initio was not "the most practical or appropriate remedy in this case, as such action would call into question the fees paid and distributions made."  Instead the Court ordered that the bankruptcy be expunged and that the Clerk of Court "remove all  references to the filing from the electronic record, while sustaining a hard copy of the record,  including this order, in a sealed file." Commentary: While this may remove "references to the filing from the electronic record" maintained by the bankruptcy court, it addresses neither the electronic records maintained by the credit bureaus nor the record of this bankruptcy in private repositories, such as BANKO, AACER or RECAP. For a copy of the opinion, please see: John Doe- Expungement of Bankruptcy.PDF

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