Objections to a Bankruptcy proof of claim

Objections to a Bankruptcy proof of claim are the topic of this blog post.  

Objections to a Bankruptcy proof of claim are filed with the United States Bankruptcy Court.

The United States Bankruptcy law states that any party in interest may file an objection to any proof of claim filed in a Bankruptcy case.  All debtors in Chapter 13 cases are considered a party in interest and have the right to file an objection to any proof of claim filed in their case.  Debtors in other cases such as Chapter 7 may or may not be considered as a party in interest depending on the unique issues involved in their case.

It is vitally important to properly object to any claims filed in a Bankruptcy case that is not timely filed, is defective for failure to comply with Bankruptcy law requirements or is defective in any other way or relates to any debt the amount or existence of which is disputed. The reason for this is that Bankruptcy law states that unless a party in interest objects any claim filed is deemed allowed.

It is therefore critical that all proofs of claim be carefully reviewed to determine if there are valid grounds for filing an objection. The pertinent law is 11 U.S.C. § 502(a) which states in pertinent part that, any claim filed “is deemed allowed, unless a party in interest . . . objects.” The burden is on the party filing the objection to prove to the Court that the claim is not valid and should not be paid.

In particular a debtor or their attorney should carefully review any proof of claim filed to determine if the claim was timely filed as Federal Rule of Bankruptcy Procedure 3002(c) requires most proofs of claim to be filed no later than 90 days after the first date set for the meeting of creditors called under § 341(a) of the Code.

It should be noted that Federal Rule of Bankruptcy Procedure 3001 contains numerous detailed requirements for each specific type of proof of claim and the proof of claim should be carefully reviewed to determine if it meets the strict requirements of Rule 3001.

Any objection to a proof of claim should be filed and served as soon as it has been determined that there are valid grounds for filing an objection.

Some of the more common grounds for objecting to a proof of claim are:

The creditor failed to attach sufficient documentation to prove that a debt is owed;

The amount of the claim is incorrect;

The same claim was filed more than once;

The claim was not filed in a timely manner;

The classification of the claim as secured or priority is incorrect, and

The claim states improper interest amounts or fees.

Anyone that wishes to file and serve an objection to a proof of claim should consult the local rules for their particular Bankruptcy Court and/or call the clerk of the Court as many of them have their own specific rules and procedures for objections to a proof of claim.

Attorneys or parties that would like to view a portion of a sample objection to a proof of claim created and sold by the author of this blog post can see below.

Sample Motion to Correct Clerical Error in United States District Court by Stan Burman on Scribd

 

Attorneys or parties in California that would like more information on a Federal legal document collection containing over 50 sample documents including a sample objection to a proof of claim in Bankruptcy Court sold by the author can use the link shown below.

https://legaldocspro.myshopify.com/collections/frontpage/products/federal-legal-document-collection 

The author of this blog post, Stan Burman, is a freelance paralegal who has worked in California and Federal litigation since 1995 and has created over 300 sample legal documents for sale.


*Do you want to use this article on your website, blog or e-zine? You can, as long as you include this blurb with it: “Stan Burman is the author of over 300 sample legal documents for California and Federal litigation and is the author of a free weekly legal newsletter. You can receive 10 free gifts just for subscribing. Just visit freeweeklylegalnewsletter.gr8.com/ for more information.  

Follow the author on Twitter at: https://twitter.com/LegalDocsPro

DISCLAIMER:

Please note that the author of this blog post, Stan Burman is NOT an attorney and as such is unable to provide any specific legal advice. The author is NOT engaged in providing any legal, financial, or other professional services, and any information contained in this blog post is NOT intended to constitute legal advice.

The materials and information contained in this blog post have been prepared by Stan Burman for informational purposes only and are not legal advice. Transmission of the information contained in this blog post is not intended to create, and receipt does not constitute, any business relationship between the author and any readers. Readers should not act upon this information without seeking professional counsel.