Nikitris Hardy v. Joseph E. Bulgarella, Trustee

CourtUnited States Bankruptcy Court, N.D. Alabama
DecidedJune 22, 2026
Docket25-02707
StatusUnknown

This text of Nikitris Hardy v. Joseph E. Bulgarella, Trustee (Nikitris Hardy v. Joseph E. Bulgarella, Trustee) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nikitris Hardy v. Joseph E. Bulgarella, Trustee, (Ala. 2026).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION

NIKITRIS HARDY,

Plaintiff,

v. Case No. 2:26-cv-178-HDM

JOSEPH E. BULGARELLA,

Trustee.

MEMORANDUM OPINION AND ORDER This matter is before the court on Plaintiff Nikitris Hardy’s Renewed Petition for Mandatory Withdrawal of the Automatic Reference. (Doc. 1). For the reasons set forth herein, Hardy’s motion is DENIED.

I. BACKGROUND On September 8, 2025, Plaintiff Nikitris Hardy, with the assistance of counsel, voluntarily filed for bankruptcy under Chapter 13 of the United States Bankruptcy Code. (Docs. 1-2 at 1; 5-1 at 1). The Clerk of Court assigned her case, In re Nikitris Hardy, No. 25-2707-TOM7 (Bankr. N.D. Ala. 2025), to this district’s bankruptcy court, (doc. 1-2 at 1), and the case proceeded without issue for nearly five months, see id. at 1–6. On February 3, 2026, Hardy filed a “Notice of Pro Se Status and Relief from Counsel,” id. at 5, and her attorney withdrew from the case the following day, id. at 6.1

On February 4, 2026, Hardy, now representing herself, filed the Renewed Petition for Mandatory Withdrawal of the Automatic Reference presently before the court. (Doc. 1).2 In that motion, Hardy argues that this court must withdraw her case

from the bankruptcy court for direct adjudication “because resolution of the matters at issue requires determination of constitutional limits on Article I authority, including the Fifth Amendment right to be heard and the Article III adjudication of objections to proofs of claim affecting private property rights.” Id. at 1. Hardy is

proceeding pro se and, as a result, the court will consider her motion with “special care.” See, e.g., Dean v. Barber, 951 F.2d 1210, 1213 (11th Cir. 1992).

II. DISCUSSION The United States Bankruptcy Code is codified in Title 11 of the United States Code. 11 U.S.C. §§ 101–1532. See also Wood v. Ghuste, 216 B.R. 1010, 1013

1 On the same day she filed her “Notice of Pro Se Status and Relief from Counsel,” Hardy also voluntarily converted her bankruptcy case from Chapter 13 to Chapter 7. (Doc. 1-2 at 5). This has no bearing on the court’s analysis in this order, as both Chapter 7 and Chapter 13 fall within Title 11, 11 U.S.C. §§ 701–784, 1101–1195, which renders them subject to the same law governing mandatory withdrawal of the automatic reference. 2 Although Hardy styles her motion as a “Renewed Petition,” (doc. 1 at 1), it is the first such motion she has filed in this case. (Bankr. M.D. Fla. 1998) (“Title 11 . . . of course, is the Bankruptcy Code.”). This court has “original and exclusive jurisdiction of all cases under title 11,” 28 U.S.C.

§ 1334(a), and, in the exercise of such jurisdiction, may refer “any or all cases under title 11 and any or all proceedings arising under title 11 or arising in or related to a case under title 11 . . . to the bankruptcy judges for the district,” 28 U.S.C. § 157(a).3

See also Love v. MidFirst Bank, No. 5:18-mc-938, 2018 WL 4006883, at *2 (N.D. Ala. Aug. 22, 2018) (“District courts are permitted . . . to refer all cases to the bankruptcy court to the extent that they arise under, arise in, or relate to a case under title 11.”). In this court, it is standard procedure to refer all Title 11 cases to the

district’s bankruptcy judges, see Thompson v. LVNV Funding, LLC, 534 B.R. 816, 818 (N.D. Ala. June 18, 2015), and, more than forty years ago, the court adopted a standing order doing so automatically, see In re: General Order of Reference (N.D.

Ala. July 16, 1984) (“Pursuant to 28 U.S.C. § 157(a) . . . all cases under title 11 and all proceedings arising under title 11 . . . are hereby referred to the Bankruptcy Judges for this district.”).4

3 If Hardy’s assertion that “[o]riginal jurisdiction over cases arising under Title 11 is vested exclusively in this Court,” (doc. 1 at 1), is intended as an argument that the bankruptcy court lacks jurisdiction over her case altogether, such a position is plainly contradicted by 28 U.S.C. § 157(a). 4 The court’s general orders are publicly available at https://www.alnd.uscourts.gov/general- orders-sorted-title. Referral of Title 11 cases to a bankruptcy judge is not irrevocable and, as relevant here, the court must withdraw the reference upon a party’s motion if it

“determines that resolution of the proceeding requires consideration of both title 11 and other laws of the United States regulating organizations or activities affecting interstate commerce.” 28 U.S.C. § 157(d).5 Although “[t]he Eleventh Circuit has not

articulated a standard for evaluating mandatory withdrawal,” Stower v. Cornide, No. 23-cv-20143, 2023 WL 1100454, at *2 (S.D. Fla. Jan. 30, 2023), this court has recognized that, [A]ll district courts within the Eleventh Circuit that have considered the issue[] have found that withdrawal should be granted only if the current proceeding could not be resolved without substantial and material consideration of the non-[Bankruptcy] Code federal law. For withdrawal to be warranted, the issues in question must require more than the mere application of well-settled or hornbook non-bankruptcy law; significant interpretation of the non-Code statute must be required.

Thompson, 534 B.R. at 818 (emphasis added) (internal quotation marks, brackets, and citations omitted). See also Williams v. LVNV Funding LLC, No. 7:14-mc-2055, 2014 WL 7409544, at *1 (N.D. Ala. Dec. 31, 2014) (“The majority of courts to consider the issue have found that withdrawal is mandatory only if the court can make an affirmative determination that resolution of the claims will require

5 The court need not consider whether permissive withdrawal of the reference “for cause,” 28 U.S.C. § 157(d), is appropriate because Hardy explicitly and solely seeks the mandatory withdrawal appropriate when a bankruptcy case significantly implicates non-bankruptcy law, (see doc. 1 at 1). substantial and material consideration of those non-Code statutes which have more than a de minimis impact on interstate commerce.”). In practice, this looks like Cole

v. MidFirst Bank, in which this court found withdrawal to be mandatory under 28 U.S.C. § 157(d) because “in order to resolve Plaintiff’s claim, a Bankruptcy Court would have to . . . review and analyze a brand new non-bankruptcy mortgage

servicing regulation to determine its ambit and operation.” No. 5:18-mc-1402, 2018 WL 6504433, at *3 (N.D. Ala. Dec. 11, 2018) (citation and quotation marks omitted). Thus, it is not enough for a plaintiff to argue—as Hardy does—that her case implicates non-bankruptcy law in some tangential way that merely calls upon

the bankruptcy judge to apply well-settled law; withdrawal of the reference is required only when the case calls upon the bankruptcy court to resolve substantial questions arising under some law other than Title 11. See Williams, 2014 WL

7409544, at *1.

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Related

Wood v. Ghuste (In Re Wood)
216 B.R. 1010 (M.D. Florida, 1998)
Thompson v. LVNV Funding, LLC
534 B.R. 816 (N.D. Alabama, 2015)

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Nikitris Hardy v. Joseph E. Bulgarella, Trustee, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nikitris-hardy-v-joseph-e-bulgarella-trustee-alnb-2026.