What is the test for bad faith under Rule 1009(a) of bankruptcy law?
federal, United States of America
The following excerpt is from In Re Laurence R. Nicholson, 435 B.R. 622 (B.A.P. 9th Cir. 2010):
The bankruptcy court gave little weight to the debtors' beliefs or motives, opining that [t]he bad faith exception to Rule 1009(a) regulates bad-faith acts, not thoughts. However, a debtor's subjective intent is an important, although not determinative, factor in determining bad faith. Marsch v. Marsch (In re Marsch), 36 F.3d 825, 828 (9th Cir.1994).
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