The U.S. Bankruptcy Court for the Eastern District of Michigan issued Administrative Order 13-12 on August 14th. The Administrative Order removes all cases from Judge Steven Rhodes’ docket for Chapter 7, Chapter 11, Chapter 12, and Chapter 15 bankruptcy filings. The bankruptcy court’s clerk has or will reassign to the other judges located in Detroit. All Judge Rhodes’ Chapter 13 bankruptcies shall remain intact on his docket but the other judges shall preside over any hearings.
Judge Rhodes has been appointed to oversee the Chapter 9 bankruptcy filing of the City of Detroit. This move frees up his time to handle the complexities of Detroit’s bankruptcy filing.
Judge Rhodes is also planning on retiring in the next year. So the movement of his docket also sets the stage for an easier transition after the City of Detroit’s bankruptcy filing is complete.
We expect the main reason why Judge Rhodes’ Chapter 13 docket stayed intact is that all of his bankruptcy filings are handled by Trustee Krispen Carroll. Each Trustee is assigned to a particular judge, and if the cases were transferred at random to other judges, then Ms. Carroll’s office would lose most of her files, which would then have to be sorted by one of the other two Chapter 13 bankruptcy Trustees. The current handling allows Trustee Carroll to continue the execution of her duties as Chapter 13 bankruptcy Trustee, and yet still frees Judge Rhodes time by allowing the other Detroit bankruptcy judges to substitute in for hearing calls.
Our firm has spoken with Judge Rhodes’ courtroom deputy and she stated all Chapter 13 matters shall report to Judge Rhodes’ courtroom for status conferences and contested hearings.
Further, from the bankruptcy court’s new website devoted solely to the City of Detroit’s Chapter 9 bankruptcy filing, it appears that all hearings regarding the City’s filing are scheduled to take place in the Federal Courthouse across the street from the bankruptcy court. This allows a larger space and easier access for citizens and media to attend the hearing and still leaves free Judge Rhodes’ courtroom for remaining Chapter 13 hearings.
See the Administrative Order for more information at http://www.mieb.uscourts.gov/sites/default/files/general-ordes/AO%20No.%2013-12.pdf.
