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Patrick S. Layng, United States Trustee v. Marisa Garcia (In re Marisa Garcia)

14 B 14023, 16 A 00387
The matter before the court is whether, at the request of the debtor, the court should stay an adversary proceeding, brought by the United States Trustee, seeking a denial of discharge under 11 U.S.C. § 727. The debtor argues that the existence of parallel criminal investigations means that continuing the adversary is imprudent, as that might subject her to conflicting choices—namely to invoke a Fifth Amendment privilege against self-incrimination and face possible negative inferences arising therefrom, or to defend the adversary complaint and risk information therein being used in a criminal indictment. Held: In light of there being no actual pending criminal proceeding, the relevant standards as applied to the facts herein as they presently exist weigh in favor of continuing with the adversary. The motion to stay is, therefore, DENIED without prejudice.

Date: 
Wednesday, July 19, 2017