Ferguson obtained a judgment in 2008 against the Robert Dean, who, with his then wife, Lisa Dean, subsequently filed a Chapter 7 bankruptcy in 2010. Believing that the real property was held as Tenants by the Entireties, the judgment lien was not avoided and the Deans received a discharge. Subsequently, the Deans divorced with Mr. Dean transferring his interest in the real property to Lisa and her new husband. When Lisa sought to refinance the real property in 2015, the judgment lien was discovered. The Debtors then sought to re-open the bankruptcy and to avoid the lien, with Ferguson objecting.… Read More
Following the confirmation of its Chapter 11 plan and closure of the bankruptcy, the Debtor was sued in state court for a pre-petition debt by a creditor that was unknown at the time of filing of the bankruptcy and unlisted in the schedules. The state court directed the Debtor to re-open the bankruptcy case for a determination of whether the debt was discharged. Facing dismissal for failure to pay quarterly fees, the Debtor argued that it should not be required to pay such fees as they were forced to reopen the case.
The court quickly rejected the argument that the Debtor, which had filed a voluntary Chapter 11, was forced to appear again.… Read More
Prior to the Debtor’s discharge, the Tortoretes were granted two extensions of time for the purpose of reviewing documents provided in connection with the Rule 2004 Examination of Cornerstone and to consider filing a complaint objecting to discharge. When no objection was filed, the Debtor was granted a discharge. Nearly one year later, the Tortoretes sought to reopen the Debtor’s case to object to discharge. Finding that while there is no time limit on the ability of a bankruptcy court to re-open a case, here the Tortoretes had failed to establish cause to do so and the interests of finality conclusively weighed against it.… Read More