In the Matter of Canopy Financial Inc.

Bankruptcy Ct. did not abuse its discretion in denying creditor’s motion to vacate default that Bankruptcy Ct. had entered under Fed. R. Bankr. P. 9024, where creditor had failed to answer complaint filed by Trustee seeking return of $80,000 “fraudulent” payment made by debtor to creditor at time debtor was insolvent. Record showed that Trustee served complaint on registered agent of creditor, and Bankruptcy Ct. could properly attribute agent’s omissions to creditor. Moreover, creditor failed to provide sufficient facts to establish that any error in agent’s failure to notify creditor of existence of complaint was excusable. Ct. further noted that creditor had burden of both production and persuasion in its motion to vacate instant default, and creditor failed to meet said burdens where creditor neglected to present any statement from agent regarding actions taken or not taken to inform creditor of existence of complaint.