The creditors moved to set aside the automatic discharge of the bankrupt, Arash Nashid, which occurred despite their informal notice of opposition to the trustee.
The court found jurisdiction to set aside the discharge where there is injustice or an appearance of injustice.
Considering factors such as the timeliness of the creditors' informal notice, the trustee's prejudicial actions, the bankrupt's awareness of the opposition, the lawyer's inadvertence, lack of prejudice to the bankrupt, and prejudice to the creditors, the court granted the motion.
The automatic discharge was set aside, and the creditors were granted an extension to formally file their notice of opposition.
