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  1. #1
    Join Date
    Apr 2011
    Posts
    2

    Default When is a Proof of Claim Considered Accepted in a Chapter 11 Case

    My question involves bankruptcy in the state of: Florida

    I have a Proof of Claim that I filed as secured against a company that filed Chapter 11 in August of 2009. I initially tried to get Relief from Automatic Stay but in lieu of going through that process and still having to file a claim to collect any potential damages, the judge in their chapter 11 case had me file a secured claim. This occurred in February, 2010.

    Because I was not on the original schedule (nor amended as it was last amended 90 days after the initial filing, but before my Relief hearing), this claim is still included with all of the other Proofs of Claim. Mine is not disputed or stipulated nor is it in an advesarial proceeding while many others in the same claim register do have that designation. I filed mine 4 months before the deadline. Confirmation is scheduled in early May.

    So, my question is this - when do filed Proofs of claim become an accepted claim?

  2. #2
    Join Date
    Sep 2010
    Posts
    478

    Default Re: When is a Proof of Claim Considered Accepted in a Chapter 11 Case

    You were instructed to file a POC because, as you stated, the debtor did not list you as a creditor in the Schedules. You filed the claim as per 11 USC 501. Your claim is deemed "allowed" pursuant to 11 USC 502 unless someone objects to it.

    The real questions are: How does the Chapter 11 Plan treat your claim? Are you an impaired class? Are you unimpaired? Can you vote on the Plan? What are you secured by and are you adequately protected? Is the debtor attempting a cram-down? Can you utilize the 1111(b) election? These are questions for which the answers are much too complicated for any Internet forum. You really should be discussing your situation and options with a well qualified creditor's attny who is knowledgeable about Chapter 11 proceedings.

    Des

  3. #3
    Join Date
    Apr 2011
    Posts
    2

    Default Re: When is a Proof of Claim Considered Accepted in a Chapter 11 Case

    Des,

    Thank you for your response. Here is more detail:

    1. The claim is secured and is grouped in a class with other secured claims. The secured classes ahead of mine are specific to individual banks and the government, with priority leading all classes.
    2. I am allowed to vote.
    3. What I am secured by is actually the instruction of the judge to file my claim secured. I had sought a Motion for Relief from Automatic Stay so I could sue them in a court in another state. The violations and fraud I was claiming against them were committed in violation of automatic stay in my Chapter 13 bankruptcy. The bankruptcy court where my chapter 13 plan exists has held open my Motion for Creditor Misconduct and Violation of Stay until the Motion for Relief from their court was granted. The judge in their court ruled that my motion would be denied without prejudice because I should file my claim as secured. The debtors' attorney admitted the claims in the basis of my motion, so the judge stated that allowing the suit to go through in my court would create an extra step, especially since the debtors admitted their misdoings. With my judgement, I would still have to file a claim in the debtors' court. He did say say the denied motion was without prejudice, so if the debtors or other creditors objected, I could re-file the motion and have my hearing in the other court but my claim would remain and allowed to be amended or refiled when the judgement was made in my court. So my secured claim is based on that.
    4. I am assuming they are doing a cram down because my class will receive cash through deferred payments.
    5. 1111(b) has been considered, but the rarity of my type of claim puts it into a lot of gray area.

    I agree with you that this is a difficult thing to decifer in a forum. Problem is, I am having difficulty finding a creditor attorney that can pick this up from here. Any recommendations are appreciated.

  4. #4
    Join Date
    Sep 2010
    Posts
    478

    Default Re: When is a Proof of Claim Considered Accepted in a Chapter 11 Case

    Yes, way too complex and convoluted for this kind of a forum. I do not know any attorneys in your State so I cannot make any suggestions.

    I do want to point out something. . . You say you are in a Chapter 13. Unless your claim against this Chapter 11 debtor falls under some exemption, you do realize that anything you may collect belongs to the creditors of YOUR Chapter 13? Further, unless you are paying 100% of all allowed claims no recovery goes in your pocket. This is true even if the claim arose after you filed since all after acquired property belongs to the Chapter 13 estate. Typically the only exception maybe if you get your Judge to issue a sanction vs. the offender who violates the Stay. That sanction can be carved out by the Judge and given to you per the Judge's authority under Section 105 of the Code.

    Assuming you realize that your recovery probably belongs to YOUR unsecured creditors, what is the point of proceeding down this path? Could this be the reason you have been unable to secured an attorney to represent you? Just food for thought.

    Des.

  5. #5

    Default Re: When is a Proof of Claim Considered Accepted in a Chapter 11 Case

    I would think, having worked in florida for many years, that he would have no trouble finding a lawyer no matter what the situation lol. Good lluck my friend

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