Kentucky Bankruptcy Law

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Late Secured Claim Disallowed Under 12/01/2017 Amended Rules

Yikes! Debtors counsel need to pay close attention to this deadline.

Chapter 13 Trustee, EDKY: Trustee's Blog

A secured claim filed after the bar date is disallowed when objected to in the EDKY, even if it is provided for in a confirmed chapter 13 plan.  A copy of the order is available here.

The debtor’s confirmed plan provided that the creditor’s claim, which is secured by the debtor’s car, would be paid as a “910 claim.”  The creditor filed its proof of claim after the deadline for filing claims (the “bar date”).  I objected to the claim as being untimely filed.

In the Eastern District of Kentucky, the court has a long history of sustaining objections to the allowance of late unsecured claims in chapter 13 cases, strictly interpreting 11 U.S.C. § 502(b)(9) and the Federal Rules of Bankruptcy Procedure.  (In a nutshell, section 502(b)(9) says that if an objection to a claim is filed, the court shall allow the claim “except to the extent that proof…

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November 28, 2018 Posted by | Uncategorized | Leave a comment