Chapter 9, B. Proof of Claim

• Jurisdiction: United States

B. Proof of Claim

A creditor must file a proof of claim or notice of claim during the bankruptcy proceeding in order to preserve its claim against the debtor. Pursuant to Fed. R. Bankr. P. 3003, "[t]he court shall fix and for cause shown may extend the time within which proofs of claim or interest may be filed." If a creditor fails to timely file a proof of claim, it may be precluded from asserting a claim against the debtor.²³⁰ While the failure to file a proof of claim will bar any recovery from the debtor, it will not affect the claimant's right to pursue recovery from nondebtors, including the debtor's insurer.²³¹

When a proof of claim is filed, it is deemed allowed unless a party in interest files an objection. The filing of a proof of claim is prima facie evidence of the validity and the amount of the claim.²³² The insurer may be considered a party in interest and thus be able to object to a claimant's proof of claim. If the debtor does not object to a claim for which the insurer may be responsible, it should consider filing an objection. The objecting party has the burden of providing evidence, which, if believed, would refute at least one of the allegations that is essential to the legal sufficiency of the claim.²³³

A bankruptcy proceeding will have a bar date, which is the date before which all creditors must file their proofs of claim. A court may, for cause, extend that date. The factors taken into consideration by a court when determining whether cause exists to extend the bar date are "(i) the reason for the delay, (ii) the length of the delay, (iii) whether the debtor was prejudiced by the delay, (iv) the debtor's knowledge of the claim and (v) the good faith of the creditor."²³⁴ Courts have also applied Fed. R. Bankr. P. 9006(b)(1) and determined that leave should only be given to file untimely proofs of claim when the failure to meet the bar date is the result of "excusable neglect."²³⁵ If there is no determination of "excusable neglect," the creditor will not be allowed to file its claim. The failure to file a proof of claim in the debtor's bankruptcy proceedings is a bar to the continued prosecution of a claim against the debtor.²³⁶

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Notes:

^[230] In the Matter of Coho Resources Inc., 345 F.3d 338 (5th Cir. 2003).

^[231] See Coho, supra; but cf. In re White Motor Credit, 761 F.2d 270 (6th Cir. 1985).

^[232] Amatex Corp. v. Aetna Casualty & Surety Co., et al., 107 B.R. 856 (E.D. Pa. 1989).

^[233] In re Allegheny International Inc. 954...