Attorney for Debtor Makes Issue Over Filing of Duplicate Claim

[janatcal]

My question involves bankruptcy in the state of California.

Hello and thank you for your time. I am a licensed contractor, creditor in a Chapter 11 bankruptcy in California. In July I filed a Proof of Claim for funds owed me by homeowner (Debtor) for services. The contract was $20,000 of which $4,000 is outstanding and is not in dispute. I have not hired a lawyer in this matter; there hasn't seemed a need to.

A month ago I received a Notice of Claims Bar Date, giving the last day to file an amendment to any claim. Since I had no amendment to make, I would have properly ignored this Notice, except for one thing--I realized I had never received the Schedule of Assets and Liabilities of debtor referred to in the Notice and by which I could have verified that my claim was indeed on the Schedule and in the correct amount. So I decided just to be on the safe side, I'd file a duplicate claim, thinking at least it couldn't hurt.

I now realize that instead of filing a duplicate claim, it would have been better for me to call their office and request that the Schedule be sent to me, to eliminate my doubts. (Water over the dam...)

Yesterday, to my shock, I found a message from Debtor's attorney on my voicemail saying that he will seek sanctions against me for contempt because my two Claims are identical, if I do not withdraw one of the claims by the end of this week.

Because of the implied threats and blustering tone of the message he is apparently suggesting something nefarious on my part. As I see it, the worst I've done is made an error in protocol.

My question is how to respond. Because of his adversarial tone, I'm thinking that it won't be enough to simply call or write his office requesting to withdraw the duplicate claim (and to send the Schedule), but that something more formal is required of me in response.

What is my best course of action? Thank you.

[despritfreya]

Your simple response is to withdraw one of the two claims. There was no need for the attny to be adversarial. A short letter requesting that the duplicate claim be withdrawn would have sufficed. Duplicate claims are not uncommon and easily handled.

Des.

[janatcal]

Thank you, this was just what I needed to make the call and request to withdraw the duplicate claim; I also sent a letter requesting it.

But the attorney says that calling and writing are not enough; I must file a Withdrawal of Proof of Claim (for one of the duplicate claims) at the court. So I will do that...

Also, is it normal to have to request to be put on a service list in a bankruptcy case? I thought that key documents were sent to the parties as a matter of course--especially the Schedule of Assets and Liabilities of Debtor.

Am I wrong to handle this without hiring an attorney?

[despritfreya]

I must file a Withdrawal of Proof of Claim (for one of the duplicate claims) at the court. So I will do that...

That would be correct. You file a "Notice of Withdrawal of Claim Number ____"

Also, is it normal to have to request to be put on a service list in a bankruptcy case? I thought that key documents were sent to the parties as a matter of course--especially the Schedule of Assets and Liabilities of Debtor.

Assuming you have been receiving notices from the Court you are already on the Master Mailing List. Creditors are not mailed copies of the Schedules. If you wish to view them you have to either go to the bk court or sign up for PACER (which requires a credit card as there is a fee to view entire documents - but I think the fee is waived if you stay under $10.00/month).

For PACER info go to:

http://www.pacer.gov/

For electronic notices (instead of snail mail) go to:

http://ebn.uscourts.gov/index.adp

Am I wrong to handle this without hiring an attorney?

Not unless you have some dispute like trying to get your claim excepted from discharge due to some fraud, misrepresentation, willful and malicious injury etc.

Des.

[janatcal]

Thank you for these resources. I filed the Withdrawal, no problem there.

I looked up the Schedules on the computer at the courthouse.

As it turns out, there IS a dispute, or should have been; the debtor lists an amount that is ONE-HALF of what he owes.

Live and learn...

I see that my mistake was in believing that the "Schedules" of debtor were to be drawn up AFTER receiving my (and others') Proof of Claim, whereas in fact, the term "Schedules" means the preliminary estimates listed by debtor way back when he first filed for bankruptcy, of what he thinks he owes.

Now that the Claims Bar Date is past, it's probably too late to claim a dispute without the help of an attorney. I have a good case but it may not be worth the expense.

Well at least my telling this misadventure may help someone else...

Inform yourself early, assume nothing, question everything.