AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Docket Number
Judges
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Docket Number
Judges

IN RE BROWN.

Bankrupt — Debts Not Affected by Discharge — Late Filing — Excusable Neglect

SHELLEY, Bankruptcy Judge

An extension of time to file an objection to the dischargeability of a debt was not granted, since request for the extension was made after the expiration of the period specified by the court, and the late filing was due to ordinary negligence and not "excusable neglect" under Rule of Bankruptcy Procedure 906(b)(2).

The creditors filed a motion for an extension of time to file objection to the dischargeability of a debt one day following the date set by the court, pursuant to Section 14 of the Bankruptcy Act and Bankruptcy Rule 409, as the last day for filing of such complaint. Counsel for the creditors contended that the late filing was a result of the matter mistakenly being improperly placed on the docket in his office. Counsel also stated that he probably delayed the filing of the complaint while waiting for the completion of an appraisal of real estate needed in order to assist in determining the truth of the allegations in the creditors' complaint.

In refusing to grant the creditors an extension of time, the court first held that Rule 906(b)(2) applied to this instance because application for extension of time was made after the "expiration of the specified period," i.e., the time established by order of the court. Because the motion for extension of time was filed a day subsequent to the end of the specified period, Rule 906(b)(2) requires a showing of excusable neglect before the court may extend the time for taking action. The court held that when it became apparent that the sought-after appraisal would not be available, the creditors should have requested an extension pursuant to Rule 906(b)(1), before the expiration of the period originally prescribed. The creditors failure to timely file was in the nature of ordinary negligence and not excusable neglect within the meaning of Bankruptcy Rule 906(b)(2). Therefore, the creditors' motion for an extension of time to file a complaint for determination of dischargeability was denied. See Sec. 14b [§ 727(c)] at ¶ 10,127. Rule 409 at ¶ 20,129, and Rule 906 at ¶ 20,336.

Use AI to get other relevant cases.

Comments

IN RE BROWN, (E.D.Va. 1979)
(Apr 6, 1979)