By: Aldo A. Caira III
St. John’s Law Student
In
Anwar v. Johnson, the Ninth Circuit held that the the Federal Rules of Bankruptcy Procedure do not afford a bankruptcy court discretion to retroactively extend the deadline for filing nondischargeability complaints when an attorney’s computer problems cause him to miss the electronic filing date.
[1] In
Anwar, two former employees of a corporate debtor sought to file nondischargeability complaints against the two founders, principal shareholders and officers of that corporation who each filed a chapter 7 case.
[2] Federal Rule of Bankruptcy Procedure 4007(c) mandates a strict, 60-day time limit for filing a non-dischargeability complaint.
[3] On the eve of the deadline, counsel for the former employees did not begin the two-step filing electronic filing process until 9:00 p.m.
[4] Due to computer issues, the employees’ attorney did not complete the filing process until after the deadline had passed. The bankruptcy court dismissed the complaints as untimely, finding that it lacked the discretion to grant a retroactive extension under Rule 4007(c).
[5] The district court and the Ninth Circuit both affirmed.
[6]