Strict Deadlines Apply to Discharge Challenges

Section 704(b) requires that the U.S. Trustee file a statement of abuse within 10 days after the date of the first meeting of creditors and a motion to dismiss for abuse within 30 days after filing the statement. Judge Julie A. Robinson of the Kansas District Court on appeal affirmed the Bankruptcy Court’s ruling that the U.S. Trustee cannot manipulate and extend these deadlines by continuing the meeting of creditors to later date–the first meeting is the first meeting. When the U.S. Trustee filed its statement of abuse after a continued meeting of creditors, weeks after the “first” meeting, the Courts agreed that the statement and subsequent motion to dismiss were untimely, and Debtor’s chapter 7 discharge was allowed to stand.

In re Close, Case No. 07-2076-JAR, Bankruptcy case No. 06-20195-7, Turner UST v Close.

About Jill Michaux

Jill Michaux is a Kansas bankruptcy attorney. She can be found on Google+. She and her partner, Mark Neis, are Topeka's only board certified consumer bankruptcy law specialists.