W.D.N.C.: In re Jenkins- Adjournment of §341 Meeting of Creditors

Summary: The first §341 Meeting of Creditors was conducted on May 14, 2012, but not concluded. The Trustee and Bankruptcy Administrator were granted an extension of time to file an objection to Jenkins' discharge until "sixty (60) days after the meeting of creditors pursuant to 11 U.S.C. § 341 has been adjourned." After finding Jenkins in contempt for failing to respond to email requests to set a new date, a second creditors meeting was eventually held on July 19, 2012, but was not concluded, only adjourned, without objection. On September 26, 2012, or 69 days later, the Trustee and B.A. brought suit seeking denial of Jenkins' discharge, to which Jenkins objected as untimely. The district court held that the 2011 amendments to Rule 2003(e) "imposes more stringent requirements upon trustees in adjourning creditors meetings and counters the ability of trustees to obtain continuances of unspecified length for the sole purpose of avoiding deadlines to object to discharge or exemption." The court then held that the determination of how long a trustee may adjourn a §341 Meeting of Creditors is to be decided on a case-by-case basis, considering the following factors: (1) the length of the delay; (2) the complexity of the estate; (3) the cooperativeness of the debtor; and, (4) the existence of any ambiguity in the record whether the trustee continued or concluded the meeting. Here, the district court found that Jenkins had sought to delay "at virtually every turn" the case and such was determinative in finding the objection was not time-barred. For a copy of the opinion, please see: Jenkins- Adjournment of §341 Meeting of Creditors