Withdrawal of Reference

(a) GENERALLY. A motion for withdrawal of reference under 28 U.S.C. § 157(d) and Federal Rule of Bankruptcy Procedure 5011(a) must be filed with the clerk of the bankruptcy court. Any other party in interest may serve and file a response within 14 days after service of the motion. The clerk of the bankruptcy court will transmit the motion and any response to the clerk of the district court.

If the district court orders a withdrawal of the reference, the clerk of the bankruptcy court will transmit all relevant documents to the clerk of the district court. (b) JURY TRIAL. Where the right to a jury trial has been asserted, and the proceeding is not yet trial ready, any motion for withdrawal of reference under subsection (a) of this rule must also state specific grounds for why the reference should be withdrawn before the proceeding is trial ready. [Effective April 15, 1997. Amended effective January 1, 2002; January 9, 2006; October 1, 2019; September 3, 2025.] 2025 Advisory Committee Notes Local Rule 5011-1 was amended to add subsections.

New subsection (a) addresses withdrawal of reference generally. Citations to 28 U.S.C. § 157(d) and Fed. R. Bankr. P. 5011(a) were added. The provision regarding abstention, remand, and transfer was removed to ensure consistency with 28 U.S.C. § 157(d). Abstention is addressed in 28 U.S.C. § 1334(c).

The provision about first filing a motion for stay with the bankruptcy court was removed as duplicative of Fed. R. Bankr. P. 5011(c), which states that a motion filed under Fed. R. Bankr. P. 5011(a) or (b) “does not stay proceedings in a case or affect its administration. But a bankruptcy judge may, on proper terms and conditions, stay a proceeding until the motion is decided.” The remaining changes are stylistic or were made to add clarity, such as whether it is the bankruptcy court clerk or the district court clerk who will transmit certain documents. Subsection (b) was added to address situations where the right to a jury trial has been asserted, but where the proceeding is not yet trial ready. It requires the moving party to assert the specific grounds for withdrawing the reference before the proceeding is trial ready.

See, e.g., Kelley v. JPMorgan Chase & Co., 464 B.R. 854, 863─67 (D. Minn. 2011) (explaining how the motion for withdrawal of reference was premature). 36 Please see the 2025 Advisory Committee Notes to Local Rule 9029-2 regarding the former reference to the rule being promulgated by the district court. Rule 5011-3. [ABROGATED] [Effective April 15, 1997.

Amended effective January 1, 2002; January 9, 2006; December 1, 2009. Abrogated effective September 3, 2025.] 2025 Advisory Committee Notes Local Rule 5011-3 was abrogated to ensure consistency with 28 U.S.C. § 157(b)(5), (c)(1), and (d). If there is a right to a jury trial and the parties have not consented to the bankruptcy judge conducting the jury trial under Fed. R. Bankr. P. 9015(b), a party can request a withdrawal of the reference under 28 U.S.C. § 157(d), Fed. R. Bankr. P. 5011(a), and Local Rule 5011-1. Likewise, if the case involves a personal injury tort or wrongful death claim, a party can seek an order from the district court under 28 U.S.C. § 157(b)(5) and (d), Fed. R. Bankr. P. 5011(a), and Local Rule 5011-1 withdrawing the reference for trial.

See also 28 U.S.C. § 1411 (discussing title 11 and jury trials generally). If a case involves title 11 and other laws affecting interstate commerce, a party can seek a mandatory withdrawal of the reference under 28 U.S.C. § 157(d), Fed. R. Bankr. P. 5011(a), and Local Rule 5011-1. Finally, the procedure for a bankruptcy judge hearing a non-core proceeding in which a party has not consented to entry of final orders by the bankruptcy court is generally governed by 28 U.S.C. § 157(c)(1), Fed. R. Bankr. P. 9033, and Local Rule 9033-1. The bankruptcy judge is required to issue proposed findings of fact and conclusions of law and the parties can assert objections to such findings and conclusions.

Please see the 2025 Advisory Committee Notes to Local Rule 9029-2 regarding the former reference to the rule being promulgated by the district court.