Deadline for Filing Proof of Claim in Chapter 13 Case Applies to All Claims, Including the Claims of Secured Creditors

By Jeff Narmore, Attorney Representing Standing Trustee O. Byron Meredith (Savannah, GA)

In an unusual Chapter 13 case, the Seventh Circuit Court of Appeals ruled that secured creditors are bound by the 90-day deadline for filing proofs of claim set forth in Bankruptcy Rule 3002(c). In re Pajian, 785 F.3d 1161 (7th Cir. May 11, 2015).

In what the Seventh Circuit described as “a hiccup,” secured creditor Lisle Savings Bank (the Bank) missed the proof of claim deadline by several months. The secured claim in Pajian was not a garden variety . . .

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Chapter 13 in the Bankruptcy Code (1978 as amended) marks the first time that virtually all secured debts can be somewhat altered in a bankruptcy without getting the specific agreement of security holders. Real benefit is provided to the debtors who have personal property with secured loans due. Concepts including the automatic stay preventing enforcement or perfection of a security...

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