Although there wasn’t ‘good cause’ to excuse late service of a summons and complaint, the bankruptcy court salvaged a large preference by exercising discretion and granting a 10-day expansion of the 90-day deadline.
In California, bringing litigation with a marginal possibility of success could be a bad bet whenever a contract permits one side to recover attorneys’ fees.
Ninth Circuit BAP confirmed a plan with no future creditors’ trust when the debtor claimed there were no future claims and no one was in court representing future claimants.
Listing a lawsuit explicitly in a disclosure statement may not mean there’s a ‘close nexus’ to provide subject matter jurisdiction for an action brought in bankruptcy court after confirmation.
