United States Trustee v. Cooper (In Re Cooper)

302 B.R. 633, 51 Collier Bankr. Cas. 2d 390, 2003 Bankr. LEXIS 1571, 2003 WL 22861996
CourtUnited States Bankruptcy Court, N.D. Iowa
DecidedNovember 21, 2003
Docket19-00391
StatusPublished

This text of 302 B.R. 633 (United States Trustee v. Cooper (In Re Cooper)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States Trustee v. Cooper (In Re Cooper), 302 B.R. 633, 51 Collier Bankr. Cas. 2d 390, 2003 Bankr. LEXIS 1571, 2003 WL 22861996 (Iowa 2003).

Opinion

ORDER RE: DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

PAUL J. KILBURG, Chief Judge.

This matter came on for telephonic hearing on November 5, 2003 on Defendant’s Motion for Summary Judgment. Defendant/Debtor Connie Ann Cooper was represented by Attorney Michael Mallaney. Plaintiff U.S. Trustee Habbo G. Fokkena was represented by Attorney John Schmil-len. After hearing oral argument, the Court took the matter under advisement. This is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(A).

STATEMENT OF THE CASE

Debtor seeks to have the U.S. Trustee’s Objection to Discharge dismissed on the grounds that the complaint was not timely filed.

FINDINGS OF FACT

On October 11, 2002, an involuntary Chapter 7 petition was filed in the Northern District of Iowa naming Debtor’s husband, Vernon Cooper, as the debtor. Debtor Connie Ann Cooper initiated her own bankruptcy case by filing for relief under Chapter 7 of the Code in the District of Minnesota on November 18, 2002. After being administered in Minnesota for a brief period, Debtor’s case was transferred to the Northern District of Iowa. Soon after the transfer to Iowa, the Chapter 7 Trustee submitted an application to the Court asking that the two cases be *635 consolidated and that the dates of meetings and deadlines be uniform in order to improve the ease and efficiency of administering both cases.

The Chapter 7 Trustee’s application to consolidate was granted in part and denied in part in In re Cooper, No. 02-03566, No. 03-00235, slip op. at 5-6, 2003 WL 1965711 (Bankr.N.D.Iowa Apr. 7, 2003). Several of the deadlines remained unchanged due to the Trustee’s lack of standing to request such changes. Id. at 5. This Court, however, did grant the Chapter 7 Trustee’s request to set a uniform deadline to object to discharge under § 727. Id. at 6. The Court stated:

In reviewing this matter, the Court finds that because of the transfer of the case from initial administration in Minnesota to the Iowa Bankruptcy Court, sufficient equitable grounds exist to extend the deadline for objecting to discharge under § 727 for the brief period of time necessary to make it consistent with the deadline previously set in the case of Vernon Cooper.

Id. at 4.

After transfer from Minnesota, the first § 341 meeting of creditors in Connie Ann Cooper’s case was set for March 3, 2003. The original deadline for creditors to object to the discharge was May 2, 2003, which is 60 days after the & sect;341 meeting. In the April 7, 2003 order, the Court extended the deadline to file such objections to May 19, 2003, which was also the deadline in the Vernon Cooper case. Neither the Chapter 7 Trustee’s Motion for Extension of Time nor the Order granting it refer to any other parties of interest nor do they specifically limit the grant of the extension of time to only the Chapter 7 Trustee.

On May 12, 2003, the Chapter 7 Trustee filed a second Motion to Extend Time Within Which to Object to Discharge. This Motion was granted on May 19, 2003, extending the deadline to file an objection to the discharge to July 30, 2003. The May 12 motion was submitted by the Chapter 7 Trustee on behalf of herself and the U.S. Trustee. The order granting the second motion stated, “The deadline for Trustee and/or the office of the U.S. Trustee to object to discharge of Debtors is extended to July 30, 2003.” Unlike the first order granting an extension of time to file objections, this order includes the U.S. Trustee in the grant of extension of time.

The U.S. Trustee filed the Objection to Discharge Under 11 U.S.C. Section 727(a) on July 25, 2003. This objection was submitted in response to the U.S. Trustee’s receipt of Vernon Cooper’s amended inventory list, which was filed on June 6, 2003. According to the U.S. Trustee, comparing Vernon Cooper’s amended inventory list with Debtor’s scheduled assets suggests that Debtor failed to accurately report her interest in some assets.

Debtor asserts that the first extension, granted on April 7, applied only to the Chapter 7 Trustee and the deadline for objecting to the discharge remained set at May 2, 2003 for all other parties. She contends that because the U.S. Trustee’s right to file an objection or request an extension expired on May 2, the second extension is void to the extent it applies to the U.S. Trustee. The second extension was granted based on a motion filed on May 12, ten days after the time expired for filing such motions. Debtor argues the U.S. Trustee’s complaint should be dismissed because the motion for an extension was untimely.

CONCLUSIONS OF LAW

Federal Rules of Bankruptcy Procedure designate the time in which an interested party may object to a debtor’s discharge. *636 “In a chapter 7 liquidation case a complaint objecting to the debtor’s discharge under § 727(a) of the Code shall be filed no later than 60 days after the first date set for the meeting of creditors under § 341(a).” Fed. R. Bankr.P. 4004(a). The first meeting of creditors was set for March 3, 2003. Under Rule 4004(a), May 2, 2003 was the last day for a party to object to discharge.

Rule 4004(b) states, “On motion of any party in interest, after hearing on notice, the court may for cause extend the time to file a complaint objecting to discharge. The motion shall be filed before the time has expired.” Fed. R. Bankr.P. 4004(b). It is a well settled rule of law within the Eighth Circuit that the time requirements stated in Rule 4004 are akin to statutes of limitations and strictly construed. In re Harbaugh, 301 B.R. 317, 319-20 (8th Cir. BAP 2003); In re Bozeman, 226 B.R. 627, 630 (8th Cir. BAP 1998). It is undisputed in this case that the Chapter 7 Trustee’s first motion to extend time to file an objection was timely. Likewise, the second motion for an extension was filed prior to the expiration of the first extended deadline.

Whether the extension to file an objection under Rule 4004(b) applies to only the movant or to other interested parties appears to be an open question of law within the Eighth Circuit. The language of Rule 4004(b) itself provides little guidance in answering this question. The Advisory Committee Note to Rule 4004 states, however, “An extension granted on a motion pursuant to subdivision (b) of the rule would ordinarily benefit only the movant, but its scope and effect would depend on the terms of the extension.”

Courts in other jurisdictions have consistently held than an extension of time under Rule 4004(b) only applies to the moving party. In re McCord, 184 B.R. 522, 525 (Bankr.E.D.Mich.1995) (stating extension order applies only to trustee, despite trustee’s assurances to plaintiff it applied to all creditors);

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Bluebook (online)
302 B.R. 633, 51 Collier Bankr. Cas. 2d 390, 2003 Bankr. LEXIS 1571, 2003 WL 22861996, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-trustee-v-cooper-in-re-cooper-ianb-2003.