Administrative Consolidation

Consolidation of the administration of the bankruptcy estates of two or more related debtors to reduce the costs of administration and conserve judicial and clerical time. The estates remain separate for the purposes of identifying the assets and liabilities of the separate debtors and determining the dividend to be paid to creditors. Bankruptcy Rule 1015(b) authorizes the bankruptcy court to order the joint administration of cases of two or more debtors if the debtors are (1) a husband and wife, (2) a partnership and one or more of its general partners, (3) two or more general partners of a partnership, or (4) a debtor and its affiliate. Administrative consolidation is to be contrasted with substantive consolidation of debtors’ bankruptcy estates where multiple bankruptcy estates are treated as one entity and the assets and liabilities of each entity are treated as belonging to that single entity.

See also Substantive Consolidation.

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