In the Matter of Farrar H. Levens, Bankrupt. Lloyd E. Nichols and Irene Nichols v. Farrar H. Levens

RONEY, Circuit Judge:

Once a bankruptcy trustee files a report placing exempt property beyond the grasp of creditors, Bankruptcy Rule 403(c) allows the creditors only 15 days to object. In this case, the creditors missed the deadline, and the district court refused to consider their objection. We reverse that judgment because the trustee’s failure to file his report within the time required by the rules deprived the creditors of constructive notice of the filing, and they received actual notice no more than 14 days before they objected.

Bankruptcy Rule 403 provides, in part:(b) Trustee’s…