Skip to main content

Can a creditor still file a proof of claim after the bar date has passed? Personal Chapter 11 BK

Seattle, WA |
Filed under: Bankruptcy

1st Mortgage was avoided due to unperfected lien. Mortgage company did not record deed of trust for over four years after loan was made. Judge signed Judgment by default avoiding the lien as preferential transfer due to the fact that the mortgage company finally filed the deed of trust, but was within 90 days of my BK filing. Mortgage company also did not file a proof of claim by the bar date. Also a few other creditors did not file by the bar date. All creditors were listed as disputed in the initial BK filing

Attorney Answers 4


  1. Yes. However, the late-filed claim may be subject to an objection on the basis that it was late filed. Acknowledging that this is a chapter 11 case, you should be mindful of the possible application of Section 726, which under certain circumstances permits payments to creditors who filed claims after the bar date. You should consult with an experienced chapter 11 attorney.

    By using this web site and this question-answer forum, you understand and agree that no response or information is being provided in the context of any attorney-client relationship and that nothing herein is intended to constitute legal advice. This response is solely informational in nature, not intended as a substitute for competent legal advice from a licensed and retained attorney in your state, and should not be so used. I make no representations or warranties as to the timeliness, availability, accuracy, or completeness of any information contained in this response. The response provided may become outdated over time. Please note that I will not undertake any action to correct or update any content or information in this response and reserve the right to alter or delete content and information at any time.


  2. I agree with my colleague and I would like to add that this impacts your liquidation analysis so plan accordingly.

    Be sure to designate "best answer." If you live in S. California, you may call my firm for a consultation 818-507-6000. The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here. Please visit my web site: www.tilemlaw.com for more information about my services.


  3. I concur with my colleagues above. You should know that the United States Supreme Court set a very high standard for a creditor seeking to have their late filed claim deemed timely, or for its impact to change the course of your plan in your case. Basically that standard is the "excusable neglect" standard...which sounds benign but sets a substantially high bar. If your lender seeks redress, do not go quietly into the night...seek competent counsel.

    THIS INFORMATION IS PROVIDED FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL ADVICE. THERE ARE OFTEN ADDITIONAL FACTS AND CIRCUMSTANCES THAT, IF KNOWN TO THE ATTORNEY, MAY AFFECT OR MODIFY THEIR ADVICE TO YOU. IT IS ALWAYS BEST TO RELY ON ADVICE PROVIDED IN THE CONTEXT OF A FULL CONSULTATION AND WITH COUNSEL WHO IS BOARD CERTIFIED, OR HAS SUBSTANTIAL CREDENTIALS IN THE FIELD OF INQUIRY


  4. What I have seen in Western WA is that proofs of claim filed late are generally accepted unless the Debtor objects or the creditor files a motion to allow the late filed claim.

    I am not your attorney and am not giving legal advice.

Bankruptcy and debt topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics