On November 12, the U.S. Bankruptcy Court for the Central District of California issued an order dismissing a Chapter 11 case involving a debtor fintech company represented by a Chapter 11 trustee. The court granted the trustee’s motion to dismiss the case and authorized the destruction of records and data, wind down the estate, and clear certain parties from liability — except in instances of fraud, gross negligence, or willful misconduct. The court stated it will enforce all prior orders and reserved authority over specific bankruptcy provisions related to this case.

As previously covered by InfoBytes, the CFPB had filed an adversary proceeding complaint in a related case against the debtor fintech company; however, the CFPB’s case had been transferred to the Chapter 11 trustee and was ordered to close in September.