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Proof of Claims
Filing of Proofs of Claims or Interests
When you file for bankruptcy, your creditors are notified to put in a proof of claim unless the trustee in bankruptcy designates your case as "no asset". For the great majority of general unsecured creditors in a bankruptcy case this is a relatively simple matter, involving the filing of a proof of claim in a timely manner and waiting for a distribution from the bankruptcy trustee acting on behalf of the bankruptcy court. Where the creditor is entitled to a priority status or holds security for the claim, matters have become subject to bankruptcy litigation by lawyers for the parties before the United States Bankruptcy Court for the Southern District of California ( United States Courthouse, 325 W. F Street, San Diego California). The sections of the bankruptcy Code dealing with the proof and allowance of claims and related matters are grouped in Subchapter I of Chapter 5, while distributions are governed by specific provisions in Chapters 7,11, and 13. Chapter 5 of the bankruptcy Code is generally applicable to cases under those chapters.
The filing of proofs of claim or interests is covered generally in §501 of the bankruptcy Code and in bankruptcy Rules 3001 through 3005. The form of a proof of claim is set forth in Official Form No. 19. In bankruptcy cases under Chapter 7, bankruptcy Rule 3002(c) provides that a proof of claim must be filed within 90 days after the first date set for the meeting of creditors called pursuant to §341(a) of the bankruptcy code. Certain exceptions are set forth in bankruptcy Rule 3002(c)(l)-(6). In a Chapter 11 case the Bankruptcy Court for the Southern District of California ( United States Courthouse, 325 W. F Street, San Diego California) fix's the time for the filing of a proof of claim and the lawyers for the creditors or their attorneys are required to comply with this deadline.Section 501(b) of the bankruptcy code permits those who may be jointly liable on a claim with the debtor to file a proof of claim and §501(c) permits the debtor or trustee to file a proof of claim where a proof is not filed by the creditor's attorney. Under bankruptcy Rule 3004 the trustee or debtor may file the claim at any time after the first date set for the meeting of creditors before Bankruptcy Court for the Southern District of California ( United States Courthouse, 325 W. F Street, San Diego California).
One of the purposes of §501(c) of the bankruptcy code is to permit the debtor to file claims that might be non-dischargeable under §523.
Finally, under §501(d), proofs of certain types of claims arising after commencement of the bankruptcy case may be filed. An example would be a claim arising from a recovery in an avoiding action. In San Diego from time to time a lawyer will fail to timely file a proof of claim, even where that lawyer has been active in the bankruptcy case. A judicial policy of liberality to amendment of informal proofs of claim has developed. At a minimum a writing must have been delivered to the trustee or bankruptcy debtor. although some courts other than the United States Bankruptcy Court, San Diego division, have been less liberal and have held a writing delivered to the debtor to be inadequate. An alternative for a lawyer for a creditor who does not timely file a claim is to file a motion under bankruptcy Rule 3003(c)(3) to extend the time in which proofs of claim or interest must be filed. Rule 3003 is applicable only in Chapter 9 and 11 bankruptcy cases. Motions to extend are disfavored and the creditor's lawyer will have the burden of showing that cause supports the extension. A number of courts other than the San Diego bankruptcy court, have equated cause under bankruptcy Rule 3003(c)(3) with excusable neglect under Rule 9006(b). As a general rule the lawyer must show that the failure to timely perform was due to circumstances beyond the reasonable control of the person whose duty it was to perform.A properly completed proof of claim that is timely filed by the lawyer with the San Diego chapter or bankruptcy court or other designated place is prima facie evidence ot a valid claim. Bankruptcy rule 3003(b)(1) makes a similar provision for duly scheduled claims that are not scheduled as disputed, contingent, or unliquidated.
The lawyers of the San Diego Pacific Bankruptcy Center
The lawyers of the Pacific Bankruptcy Center carefully evaluate all proof of claims filed by the creditors or their attorneys. Often we find that secured claims filed by mortgage companies are in inaccurate or exaggerated. In cases of an under secured mortgage creditors attorney fee's claimed may be impermissible and a burden on the bankruptcy estate created by our clients bankruptcy filing
