Opinion ID: 760165
Heading Depth: 1
Heading Rank: 2

Heading: Amendment of schedules post-petition

Text: 14 Whether the Michaels could amend their schedules post-petition is separate from the question whether the exemption was allowable. See In re Sandoval, 103 F.3d 20, 22 (5th Cir.1997) (allowing an amendment claiming an exemption is different from allowing the exemption itself). 15 Bankruptcy Rule 1009(a) provides: A voluntary petition, list, schedule, or statement may be amended by the debtor as a matter of course at any time before the case is closed. Bankr.R. 1009(a) (emphasis added); In re Kahan, 28 F.3d 79, 81 (9th Cir.1994) (as amended). No court approval is required for an amendment, which is liberally allowed. In re Doan, 672 F.2d 831, 833 (11th Cir.1982) (per curiam) (interpreting similar language in former Bankruptcy Rule 110). A court may, however, deny the debtors leave to amend on a showing of a debtor's bad faith or of prejudice to creditors. Id. at 833; see In re Andermahr, 30 B.R. 532, 533 (9th Cir.BAP 1983) (adopting Doan ); In re Magallanes, 96 B.R. 253, 255-56 (9th Cir.BAP 1988) (applying bad faith and prejudice exceptions to current Bankr.Rule 1009(a)). 16 The trustee does not argue that the case was closed. Bankruptcy Rule 5009 provides that a Chapter 7 case shall be closed when the trustee has filed a final report, and certifies without objection that the estate has been fully administered. A case is not closed simply because a discharge of the debtor has been granted. See In re Myatt, 101 B.R. 197, 199 (Bankr.E.D.Cal.1989) ( although the discharge was granted the day before the debtor filed his amended claim, the case was at that time, and is now, open). 17 Nor does the trustee argue that the Michaels acted in bad faith. See In re Magallanes, 96 B.R. at 256 (A mere allegation of bad faith ... is insufficient; bad faith must be established by clear and convincing evidence.). The trustee makes no showing of prejudice to creditors. See In re Doan, 672 F.2d at 833 (Simple delay in filing an amendment where, as here, the case is not closed does not alone prejudice creditors. Nor does prejudice to creditors occur merely because a claimed exemption, if held timely, would be granted.); In re Myatt, 101 B.R. at 200. 18 We hold that the Michaels' amendment of their schedule was permissible under the Bankruptcy Rules. This implements the policy of liberally allowing the debtors to amend their exemption claims in order to enhance their fresh start. In re Magallanes, 96 B.R. at 256.