Bankruptcy Court Rejects Equitable Tolling Argument to Extend Deadline to File Dischargeability Complaint

Bankruptcy Court Rejects Equitable Tolling Argument to Extend Deadline to File Dischargeability Complaint

On April 16, 2019 the Bankruptcy Court for the District of New Jersey denied the Creditors’ motion to extend the dischargeability complaint deadline.

Creditors allege that they were the victims of a fraudulent real estate scheme carried out by one of the Debtors. The Creditors had filed a lawsuit in state court which was pending when the bankruptcy was filed.

When the bankruptcy was filed, Creditors were sent a Notice of Bankruptcy Filing setting out the deadline to file a dischargeability complaint. The Creditors received the notice. However, they did not file a complaint objecting to discharge before the deadline.

Two months after the deadline expired, Movants filed a motion to extend the deadline on equitable tolling grounds. Creditors argued that the notice deprived them of the due process rights because they are not proficient in English, that they are unsophisticated as to the bankruptcy process, and that the notice of bankruptcy was served upon them directly and not upon their state court attorney.

Log In to READ MORE

Please note, in order to view NACBA Member Content, you must sign in and then visit NEWS. If you are not a NACBA member, you may Become a NACBA Member 

No Comments

Post a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.