How To Defeat the Creditor’s Motion to Extend Time To Object to Bankruptcy Discharge
Oftentimes in bankrutpcy , creditors pursue the dischargeability of claims against the bankrupt debtor. In such cases, these creditors believe debtors have engaged in a pattern of fraud. In other cases, creditors are unsure whether fraud exists, but the creditor is unwilling to give up its claim via a bankruptcy discharge. Thus, such creditors may ask the court for an extension of time to object to the debtor’s discharge.
In such cases, debtors must fight back where appropriate. Bankruptcy Rule 4004(b) states in relevant part:
On motion of any party in interest, after hearing on notice, the court may extend for cause the time for filing a complaint objecting to discharge.
Last I checked, there was no authority at the Court of Appeals level that had defined the necessary cause for an extension of time. However, court generally take a narrow approach and recognize that the good cause necessary to grant an extension “stringent standard . . . only [to] be given in narrow circumstances.”
Therefore, a potentially unvigilant creditor best beware that it must take timely and appropriate action where it intends to fight dischargeability issues, and a debtor should also understand not to allow a creditor additional time to bring objections where the creditor has failed to take action in a timely manner.
 In re Sirmans, 2009 WL 1356813 (E.D. Cal. 2009).
 Id., (noting that In re Magourik, 693 F.2d 948 (9th Cir. 1982) had been superseded, and rejecting the contention that bankruptcy courts should liberally grant or have ample discretion to grant an extension of time for “excusable neglect”).
 In re Farhid, 171 B.R. 94, 96-97 (N.D. Cal. 1994) (stating that the power to extend deadlines under Rules 4004(b) and 4007(c) is to be “exercised cautiously and not where lack of diligence by the creditor appears.”).
 Id. at 97 (citing In Re Littell, 58 B.R. 937 (S.D. Tex. 1986) (“Where creditor fails to show diligence in gathering facts to support an objection to discharge or nondischargeability complaint prior to the bar date, the bankruptcy court acts within its discretion in denying a motion for extension of time”).