Ninth Circuit Holds Bankruptcy Law Does not Allow Deadline to be Extended Retroactively to File a Nondischargeable Complaint – Milwaukee Predatory Lending and Bankruptcy Attorneys DeLadurantey Law Office, LLC

by DeLadurantey Law Office, LLC on August 28, 2013

Broke2In Anwar v. Johnson, after a debtor’s debts were discharged under a Chapter 7 bankruptcy, two of the debtor’s former employees objected to the dischargeability.  The former employees argued that the debts owed to them were obtained by fraud, and therefore, were exceptions from discharge under Bankruptcy Code Section 523(c).  However, Rule 4007(c) of the Federal Rules of Bankruptcy Procedure requires complainants who object to a debt’s dischargeability to file their objection within 60 days.  The 60 day period is measured from “the first date set for the meeting of creditors under Section 341(a).

When the former employees missed the 60 day deadline, the bankruptcy court held that it lacked the discretion to grant a retroactive extension of the filing deadline established under Rule 4007(c).  The district court affirmed.  On appeal, the Ninth Circuit Court of Appeal affirmed the district court holding.

The Court of Appeal held that the deadline could not be retroactively extended because “neither the federal rules, local rules, nor model rules of bankruptcy procedure
gave the bankruptcy court authority to relieve [claimants] from the consequences of [the] untimely filing.”

Objecting claimants, beware of deadlines!!

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Contact the “Milwaukee Foreclosure and Bankruptcy Attorneys,” DeLadurantey Law Office, LLC.   DeLadurantey Law Office, LLC focuses on Chapter 7 and 13 bankruptcy, debtor’s rights, debt negotiations, debt relief, mortgage loan modifications, and foreclosure defense.  A “defender of the little guy,” DeLadurantey Law Office, LLC serves the following location – Milwaukee, South Milwaukee, West Milwaukee, Waukesha City, Waukesha Town, Kenosha, Racine, and all other municipalities in Milwaukee County, Waukesha County, Kenosha County, and Racine County.

 

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{ 1 comment… read it below or add one }

Renee West August 29, 2013 at 2:04 pm

Dear Readers: In the final edit of this article, we overlooked a typo. The paragraph has been corrected as so … “However, Rule 4007(c) of the Federal Rules of Bankruptcy Procedure requires complainants who object to a debt’s dischargeability to file their objection within 60 days after their debt was discharged.” The 60 day period is measured from “the first date set for the meeting of creditors under Section 341(a).” Thank you to the commenter who correctly pointed this out.

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