KELLEY, Bankruptcy Judge
Trustee's motion for default judgment on his complaint objecting to discharge was granted under Rule 755(a) of the Bankruptcy Rules of Procedure where bankrupt failed to answer or otherwise defend the complaint.
In this involuntary bankruptcy case, the trustee filed a complaint objecting to the bankrupt's discharge under Sections 14c(6) and (7) of the Bankruptcy Act, alleging that bankrupt had: 1) failed to file any list of creditors, schedules or statement of affairs; 2) failed to attend the first meeting of creditors; 3) failed to furnish any financial records or books of account regarding his financial affairs; and, 4) failed to explain satisfactorily any losses of assets or deficiency of assets to meet his liabilities. The bankrupt did not file an answer to the complaint or a trial memorandum. On the trial date of the complaint, the trustee made a motion for a default judgment as a result of bankrupt's failure to timely respond. The bankrupt did not appear at the trial.
The court stated that it could have ordered a hearing to give the bankrupt an opportunity to explain his absence, or, on the evidence before it, proceed to decide the objection to discharge on its merits and if plaintiff carries theburden of proof, deny the discharge, under Rule 406. Instead, the court granted trustee's motion for default judgment under Rule 755 in this case because the bankrupt had failed to answer or otherwise defend the complaint objecting to discharge, even though the court had delayed entering its judgment to see if bankrupt might file pleadings or otherwise answer the complaint. See Rule 406 at ¶ 20,126 and Rule 755(a) at ¶ 20,245.