11 U.S.C. § 523; FRBP 4007; Time in which to file Dischargeability Complaint
In re Hilton, 2005 Bankr. LEXIS, Case No. 05-63964 (Bankr. N.D. Ga. November 3, 2005)(Brizendine)
After the expiration of the original deadline, creditors moved for an extension of time in which to file a complaint objecting to a discharge of certain debts. The creditors argued that although the Eleventh Circuit had previously ruled in Byrd v. Alton, 837 F.2d 457 (11th Cir. 1988) that the court did not have the discretion to extend the time, the U.S. Supreme Court had recently ruled that Fed. R. Bankr. P. 4004 was a “claims processing rule” and not jurisdictional in nature. Kontrick v. Ryan, 540, U.S. 443, 124 S.Ct. 906 (2004). Therefore, the creditors argued, the same analysis would apply to the similar Rule 4007 and allow the court to grant late-filed motions to extend the time.
The court found that although the analysis used in Kontrick may also be deemed to also apply to Rule 4007, the creditors were not entitled to an extension of time on equitable grounds. The creditors had actual notice of the bankruptcy and no satisfactory reason was given for the delay.
