Kistler

Kistler v. Cleveland (In re Cleveland)

Good Law
2006 Bankr. LEXIS 2842·353 B.R. 254
United States Bankruptcy Court, Eastern District of CaliforniaOctober 20, 2006Bankruptcy No. 05-18578-B-13; Adversary Proc. No. 06-1108California2,700 words

Opinion

Lead Opinion

Lee, J.

*256 MEMORANDUM DECISION REGARDING UNITED STATES TRUSTEE’S APPLICATION FOR ENTRY OF DEFAULT JUDGMENT AND DEFENDANT’S MOTION TO SET ASIDE ENTRY OF DEFAULT

This adversary proceeding posits the question, “What happens to an objection to chapter 7 discharge after the case is converted to chapter 13?” The United States Trustee (“UST”) filed this adversary proceeding to deny the Debtor’s discharge, or dismiss the case, based on allegations arising under 11 U.S.C. §§ 707 (b) and 727(a). 1 The Debtor failed to file a responsive pleading to the UST’s complaint, and consequently his default was entered. Before the court could enter the default judgment, 2 the Debtor converted his case from chapter 7 to chapter 13. Presently before the court is the UST’s application for entry of a default judgment (the “Application”) and the Debtor’s motion to vacate the entry of default (the “Motion”). For the reasons set forth below, both the UST’s Application and the Debtor’s Motion will be DENIED. Because the discharge objection is no longer justiciable, the adversary proceeding will be stayed so long as the Debtor remains in chapter 13.

This Memorandum contains findings of fact and conclusions of law…

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