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IN RE ECONO-MULCH CO.

Time Limitations — Extensions of Time — Filing of Proof of Claim — Discharge of Debts

DUNCAN, District Judge

Absent a showing of fraud or manifest injustice, the court can refuse to extend the time within which the creditors may file a proof of claim under Section 57n of the Bankruptcy Act.

The proof of claim was not timely filed because the creditors were not listed on the bankrupt's schedules of creditors. Therefore, the creditor had not received notice of the bankruptcy within six months of the first meeting of creditors — the time within which to timely file proofs of claim under Section 57n. The court could find no duty of the bankruptcy court to make an independent investigation of a creditor's proper identity and address for the purposes of notice of creditors' meetings under Bankruptcy Rule 203. The result of the failure to schedule the creditor is that the debt is not discharged. Absent a showing of fraud or manifest injustice, "the Court can find no error in the Bankruptcy Court's refusal to extend the time for filing appellant's proof of claim." Since no fraud or manifest injustice existed, an extension of time was not granted. See Sec. 57n at ¶ 2523.

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IN RE ECONO-MULCH CO., (S.D.Ohio 1978)
(Aug 11, 1978)