Goldstein v. Diamond, No. 15-6002 (8th Cir. 2015)
Annotate this CaseDiamond filed a chapter 7 bankruptcy petition. February 28, 2012 was the deadline for complaints to determine the dischargeability of certain debts under 11 U.S.C. 523(c). On February 15, Goldstein requested a 60-day “extension of proceedings” and “withholding of the entry of the discharge order,” claiming that he was a creditor but did not receive proper notice. The bankruptcy court found the request to be for “abatement of the case.” Finding no cause for relief, it denied the motion and the request to withhold discharge. The case closed. A year later Goldstein filed a dischargeability complaint in a different jurisdiction, not citing a statute, but captioned “Fraud and Defalcation.” The court transferred the matter to the original court. After a remand, that court entered an order to show cause why the complaint should not be dismissed. Goldstein responded. The court took no action on its show cause order, but scheduled a trial. Diamond filed an answer, requesting dismissal. Goldstein responded; the court dismissed, determining that the debt was not excepted from discharge. The Eighth Circuit affirmed. Goldstein had adequate time to protect his rights. He used that time to file a proof of claim and move for extension. He cannot , long after the fact, claim to have been hindered by his lack of knowledge of the case.
Court Description: Kressel, Author, with Federman, Chief Judge, and Saladino, Bankruptcy Judge] Bankruptcy Appellate Panel. For the Panel's prior decision in the matter, see Goldstein v. Diamond, 509 B.R. 219 (B.A.P. 8th Cir. 2014). Goldstein did not have standing to appeal the bankruptcy court's order as he was not personally aggrieved and could not, as a lay person, litigate on behalf of the limited partnerships he claims were aggrieved; Goldstein's complaint for a Sec. 523(a)(4) cause was properly dismissed as untimely; Goldstein had adequate time to initiate an adversary proceeding after learning of the bankruptcy case and failed to act on a timely basis. [ May 08, 2015
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