Case Summary:
Creditor North American Banking Company (“NABC”) moved to extend the deadline to object to the Debtors’ discharge in this Chapter 7 bankruptcy case. NABC based its request on certain collateral for which it had received relief from the automatic stay to repossess on May 22, 2025. However, Batavia Leasing Company (“Batavia”), another creditor, had obtained relief from the stay to repossess the same collateral on May 21. The deadline to object to the discharge expired on May 23. NABC filed a secured proof of claim on June 23. NABC claimed that on June 25, it discovered Batavia asserted an ownership interest in the collateral which the Debtors had already surrendered to Batavia. NABC did not file its motion to extend the objection deadline to the discharge until July 29. The Debtors objected to NABC’s motion. Under Fed. R. Bankr. P. 4004(a), 4004(b)(2), and 4007(c), the Court held that NABC was not entitled to an extension. The Court found that NABC was aware of the need to seek an extension and that nothing prevented NABC from filing a motion for an extension before the May 23 deadline. The Court also noted NABC did not file its motion for relief from stay until two-and-a-half months after the February petition date. Rejecting NABC’s argument that it was entitled to equitable tolling, the Court concluded that NABC failed to show it diligently pursued its rights or that some extraordinary circumstance prevented timely filing. Hence, the Court denied NABC’s motion to extend time to object to the discharge.

Statute/Rule References:
Fed. R.  Bankr. P. 4004(a) — Time for Objection to Discharge
Fed. R. Bankr. P. 4004(b)(2) — Extension of Time
Fed. R. Bankr. P. 4007(c) — Time for Filing Complaint under § 523(c)

Key Terms:
Extension
Filing Complaint
Objection to Discharge