Rule 2.421.Notice of Bankruptcy Proceedings

Current through May 1, 2026 · Last verified July 6, 2026

In one sentenceRule 2.421 requires a party who becomes a bankruptcy debtor while involved in a Michigan civil case to file and serve notice of that bankruptcy within 3 days, lets any other party file that notice if the debtor doesn't, and gives the court authority to pause the case pending the bankruptcy's automatic stay.

Full Text of Rule 2.421

Text sizeJump to: (A) (B) (C) (D) (E) (F)

(A) Applicability. This rule applies to all state court actions in which a party is a named debtor in a bankruptcy proceeding under 11 USC 101 et seq.

(B) Party Subject to Bankruptcy Proceeding. Any party in a state court action who is a named debtor in a bankruptcy proceeding must

(1) file a notice of the bankruptcy proceeding in the state court action no later than 3 days after becoming subject to such bankruptcy proceeding, and

(2) serve the notice on all other parties in the state court action as provided in MCR 2.107.

(C) Other Parties. If a party to a state court action learns that another party in such action is a named debtor in a bankruptcy proceeding and notice of the bankruptcy proceeding in subrule (B) has not previously been filed and served by the debtor, then such party may

(1) file a notice of the bankruptcy proceeding in the state court action, and

(2) serve the notice on all other parties in the state court action as provided in MCR 2.107.

(D) Notice Contents. Notice of a bankruptcy proceeding filed under this rule must, at a minimum, include all of the following:

(1) name(s) of the debtor(s) described in subrule (A);

(2) the court name and case number(s) of the bankruptcy proceeding(s); and,

(3) if available, the name, telephone number, physical address, and email address for the debtor’s attorney in the bankruptcy proceeding(s).

(E) Effect of Notice. If a notice is filed under this rule, the court may hold in abeyance any further proceedings and may schedule a status conference to consider the administrative closure of all or a portion of the state court action. To the extent that all or a portion of the state court action is administratively closed under this subrule or otherwise, it may be reopened if, on the motion of a party or on the court’s own initiative, the court determines that the automatic stay has been lifted, removed, or otherwise no longer impairs adjudication of all or a portion of the state court action.

(F) This rule does not abridge, enlarge, or in any way modify existing rights and procedures under federal law, including bankruptcy proceedings under 11 USC 101 et seq.

End

Amendment History

Michigan tracks the orders that adopt and amend its Court Rules in a separate administrative record rather than printing a history note beneath each rule in the compiled rules text reproduced here. The text above is verified current through the source’s own May 1, 2026 update; for the full order-by-order history of this rule, see the Michigan Supreme Court’s rules and orders page.

Plain-English Summary

When someone involved in a Michigan lawsuit becomes a debtor in a federal bankruptcy proceeding, the case usually can't keep moving the same way, because federal bankruptcy law automatically pauses most actions against that debtor. Rule 2.421 makes sure the state court and the other parties learn about it: the debtor has to file and serve a notice of the bankruptcy within 3 days of becoming subject to it, identifying the debtor, the bankruptcy court and case number, and, if available, contact information for the debtor's bankruptcy attorney. If the debtor doesn't file that notice, any other party who learns about the bankruptcy can file it instead.

Once notice is on file, the court can pause further proceedings and hold a status conference to consider administratively closing all or part of the case while the bankruptcy plays out. A case closed this way isn't gone for good: it can be reopened, on a party's motion or the court's own initiative, once the automatic stay has been lifted, removed, or otherwise stops blocking the case from moving forward. None of this changes the underlying bankruptcy law itself; the rule exists only to keep the state court record accurate and the case properly paused, not to expand or shrink anyone's actual rights under federal bankruptcy law.

Frequently Asked Questions

What do I have to do if I file for bankruptcy while I'm a party to a Michigan lawsuit?

File a notice of the bankruptcy proceeding in the state court case within 3 days, and serve it on all other parties, identifying yourself as the debtor, the bankruptcy court and case number, and your bankruptcy attorney's contact information if available.

What if the other side doesn't tell the court they filed bankruptcy?

You can file the notice yourself once you learn about it, identifying the same information the debtor would have had to provide.

Does the state court case just stop once bankruptcy is filed?

The court can hold proceedings in abeyance and consider administratively closing all or part of the case, but this happens through a status conference rather than automatically, and the case can be reopened once the bankruptcy's automatic stay no longer blocks it.

Source & verification. The rule text is reproduced verbatim from the official Michigan Court Rules (MCR 2.421). Prescribed by the Supreme Court of Michigan (Mich. Const. 1963, art. VI, § 5). The plain-English summary is original and written by us. Last verified July 6, 2026. · Official source

Also known as: notice of bankruptcy Michigan lawsuitautomatic stay Michigan civil casebankruptcy debtor party notice