Follow the Guideposts to All Proceedings

• Author: David J. Cook
• Pages: 11-21

Follow the Guideposts to All

Proceedings

Presume some slight overlap of rules—depending upon the jurisdiction for

each of these insolvency proceedings—but here are the major touchstones

for each insolvency, no matter the flavor. In confronting any proceedings,

these are the mandatory steps that you need to take in virtually every case.

When Is the Due Date to File the Proof of Claim?

The humorist Douglas Adams was fond of saying, “I love deadlines. I love the

whooshing sound they make as they fly by.” But the law more often follows

Benjamin Franklin’s stern admonition: “You may delay, but time will not.”

Time goes in only one direction. Divining the due date for the filing of the

claim is a stop-what-you-are-doing moment.

No matter the flavor of the insolvency, nearly every case requires the

creditor to file the claim on time and with the right person. The date to file

might appear in the first notice that you receive, or perhaps appear online,

or even require research. The most common error is not filing on time. In

nearly all cases, the date is a date certain, which means that any late filings

are potentially kaput unless the estate is solvent (particularly under bank-

ruptcy). To paraphrase Émile Zola, deadlines are often the terrible anvil on

which a legal result is forged (Anwar v. Johnson, 720 F.3d 1183, 1184 (9th Cir.

2013)).

Calendar the date, but instead of waiting until the last moment, running

smack into a mini disaster that can become a mega disaster, just file the

proof of claim when the notice of the insolvency hits your desk. Delay is

the enemy. File now and file correctly. Waiting for the last moment invites

disaster.

Confirm and triple confirm the address where the claims are to be sent.

Check and double check the zip code, department, suite or floor—and the

actual name of the court, agency (who would receive claims), or third party

claim administrator. Sending the claim without these details can slow or

impede the delivery and cause a fatal delay. A botched zip code is a botched

claim. Don’t leave the task to an assistant or junior associate. Do it yourself.

Even if the claim is incomplete, file now—you can amend the claim

later and add information. If you do wind up late, file the claim anyway.

Anecdotal evidence (fancy words for by guess and by golly) is that creditors

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