In Re Debtor: Jinzheng Group, LLC

I. INTRODUCTION

On August 24, 2021, Jinzheng Group, LLC (“Debtor”) filed a petition for Chapter 11 bankruptcy in the United States Bankruptcy Court, Central District of California, Los Angeles. On August 22, 2023, Debtor filed a Complaint against The Code Solution (“TCS”), asserting claims for preferential transfers, avoidance of transfers, and unjust enrichment. TCS did not timely answer the Complaint, so on October 18, 2023, the Bankruptcy Court entered default against it. On February 23, 2024, TCS filed a Motion to Set Aside Default. However, the Bankruptcy Court denied the Motion. TCS filed two additional Motions to Set Aside Default which were also denied. On November 22, 2024, TCS filed an unopposed Notice of Appeal with this Court, seeking review of the Bankruptcy Court’s Orders denying its Motions. (ECF No. 1.) TCS’s appeal is presently unopposed, as Debtor’s counsel withdrew shortly after this appeal was filed and was never replaced, despite a Court Order to secure new counsel. (ECF No. 23.) For the following reasons, the Court REVERSES the Bankruptcy Court’s Orders denying TCS’s Motions to Set Aside Default and REMANDS the matter to the Bankruptcy Court to set…