BAP Holds Time-Barred Section 707 Motion To Dismiss is Insufficient to Deny Debtor’s Rule 4004(c) Motion for Discharge

The United States Bankruptcy Appellate Panel for the First Circuit reversed the bankruptcy court’s denial of the debtor’s request for entry of a discharge and vacated its order dismissing the debtor’s case. The bankruptcy court granted several extensions of the deadlines for filing a Section 727 complaint objecting to discharge. Despite the extensions, no objections to discharge were filed. After the expiration of the objection deadlines, the Trustee filed a report of no distribution. Subsequently, the debtor filed his personal financial management certification and a motion requesting that the court enter his discharge. Before the court entered the debtor’s discharge, certain creditors filed a Section 707(a) motion to dismiss on the grounds that the debtor commenced his case in bad faith. The debtor filed a second motion for entry of his discharge, which the bankruptcy court denied. The debtor sought reconsideration, which the bankruptcy court also denied. The debtor then sought leave to appeal from the BAP, which relief the BAP denied as interlocutory. The debtor’s case was ultimately dismissed pursuant to the Section 707(a) motion. The debtor appealed the dismissal of his case and the denial of his requests for a discharge.

Read the entire post at the Bankruptcy Law Section Blog.