(W.D. Ky. May 7, 2015)
The district court denies the adversary proceeding defendant’s motion to withdraw the reference. The plaintiffs obtained a state court judgment against the defendant before the defendant filed his Chapter 7 petition. The plaintiffs then commenced the adversary proceeding to have the judgment declared non-dischargeable. The court first concludes that the motion was not timely filed, as it was filed nearly a year after the adversary complaint and after substantial briefing in the bankruptcy court. The court also concludes that the defendant failed to show cause for a discretionary withdraw of the reference because the non-dischargeability action was a core proceeding and the defendant was not entitled to a jury trial. Opinion below.
Author: Matt Lindblom