River City Bank v. Mathis (In re Mathis)

ORDER GRANTING DEBTORS’ MOTION TO SET ASIDE DEFAULT JUDGMENT

MARY GRACE DIEHL, Bankruptcy Judge.

The default judgment at issue in this case denies Debtors’ discharges and thus involves the central issue in a Chapter 7 case. While Debtors had retained counsel in the bankruptcy case, originally filed as a Chapter 12 case, that counsel notified Debtors of his intent to withdraw prior to the date on which an answer in this adversary proceeding was due. Debtors failed to timely answer the Complaint. Plaintiff River City Bank (“Plaintiff’) sought the entry of a default by the clerk, and default was…