Great Quote from In re Sullivan, new 9th Circuit BAP Bad Faith Case

“Many are the judgment creditors who gnash their teeth (metaphorical or otherwise) in chagrin when their collection campaign is stayed by a bankruptcy filing.  Only slightly less frequent are the immediate post-filing threats that no quarter will be given.  Such jeremiads, however, are not a sufficient basis for a universal conclusion of plan futility.  And they certainly do not unequivocally establish the debtor’s bad faith.  Economic considerations and rationality often result in resolution.”

In re Sullivan, —BR —, (9th Cir BAP, Dec 2014)

In Sullivan, the bankruptcy court dismissed the filing as a two party dispute with no hope of ever getting a plan confirmed.  The BAP reversed.  Credit bankruptcy attorney Sean O’Keefe for the great work.

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