In re Kitchens (20-10577)

Creditor requested extension of deadline to file complaint to determine dischargeability of debt on the grounds that the debtor’s company had failed to respond to pre-petition post-judgment discovery.  Creditor also requested that bankruptcy case be stayed, so that he could investigate possible theories under which debtor might be held liable for debt of his company.  The Court held that the creditor had not shown cause under FRBP 4007(c) for extension of deadline because he had not exercised diligence, as motion was filed on last day of objection period and all facts on which motion was based were known to creditor when bankruptcy case was filed.  The Court denied the request to stay the case because creditor did not demonstrate that he was entitled to such relief to allow him time to explore new theories of corporate officer liability.

Thursday, March 11, 2021