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Advancial Federal Credit Union v. Cruz (In re Cruz) (Case No. 23-70483; A.P. No. 23-07020) 12.26.23

The Court denied the Chapter 13 Trustee’s motion to intervene in an adversary proceeding filed by a creditor seeking determination of nondischargeability of credit card debt arising from an alleged internet scam. The Trustee asserted he has an interest in the outcome of the adversary proceeding due to his trustee duties under Section 1302(b); that he has an interest in the success of each debtor’s case and that allowing him to intervene would not prejudice or unduly delay the plaintiff’s rights. The Court held that the Trustee did not have a right to intervene under Rule 24(a)(2) as he did not demonstrate a significantly protectable interest in the adversary proceeding. The Court further held that the Trustee did not demonstrate a basis for permissive intervention under Rule 24(b)(1)(B). Finally, the Court held that Federal Rule of Bankruptcy Procedure 6009 did not support intervention.

File: 
Date: 
Tuesday, December 26, 2023
Category: 
Adversary Proceedings
Dischargeability
Chapter: 
13