In re Greene, Bankruptcy No. 8000396.
Decision Date | 16 June 1983 |
Docket Number | Bankruptcy No. 8000396. |
Citation | 30 BR 729 |
Parties | In re Philip L. GREENE, Judith K. Greene, d/b/a Liberty Liquor, Debtors. |
Court | U.S. Bankruptcy Court — District of Rhode Island |
John Boyajian, Boyajian, Coleman & Harrington, Providence, R.I., trustee.
David A. Schechter, Schechter, Abrams & Verri, Providence, R.I., for Rhode Island Hosp. Trust Nat. Bank.
DECISION SUSTAINING TRUSTEE'S OBJECTION TO THE ALLOWANCE OF CLAIM NO. 26, FILED BY RHODE ISLAND HOSPITAL TRUST NATIONAL BANK OUT OF TIME
At issue in this dispute is whether the trustee's actual knowledge of a claim, within the time allowed for filing proofs of claim, constitutes a sufficient ground for permitting a formal proof of claim to be filed out of time by Rhode Island Hospital Trust National Bank.
The facts are not in dispute. The debtor filed a petition under Chapter 13 of the Bankruptcy Code on June 3, 1980. The § 341 meeting was scheduled for June 19, 1980, and therefore all claims were to be filed by December 19, 1980. The Bank filed an unsecured claim in the amount of $59,422.40 on January 26, 1982, more than one year after the expiration of the time allowed for filing claims.
The trustee objects to the allowance of the Bank's claim, arguing that there must be strict adherence to established time limits for the filing of proofs of claim. The Bank contends that since it participated in the bankruptcy proceeding, communicated with the trustee, and provided him with documentation about the claim in question, it should now be permitted to file a late claim and have it treated as an amended claim.
11 U.S.C. § 501(a) provides that "a creditor ... may file a proof of claim." Since that section does not establish time limitations for the filing of proofs of claim, it is appropriate to refer to the Rules of Bankruptcy Procedure for guidance. H.R.Rep. No. 95-595, 95th Cong., 1st Sess. 351 (1977), U.S.Code Cong. & Admin.News 1978, p. 5787; 3 Collier on Bankruptcy ¶ 501.02 (15th ed. 1982).1 Rule 13-302 of the Rules of Bankruptcy Procedure provides in part:
Like Rule 13-302(e), Bankruptcy Rule 302(e), which also prescribes a six month filing period after the scheduled date of the first meeting of creditors, is derived from section 57(n)2 of the Bankruptcy Act. Many courts, including this one, have held that the six month period prescribed by the rules is in the nature of a statute of limitations and must be narrowly construed. See In re Pigott, 684 F.2d 239 (3rd Cir.1982); In re Walter, 29 B.R. 449 ; In re Brown, 27 B.R. 771, 10 B.C.D. 339 (Bkrtcy.N.D.Ill.1983); In re Tavares, 23 B.R. 129 (Bkrtcy.D.R.I.1982); In re Pennetta, 19 B.R. 794 (Bkrtcy.D.Colo. 1982); In re Alsted Automotive Warehouse, Inc., 16 B.R. 924 (Bkrtcy.E.D.N.Y.1982); In re Brown, 14 B.R. 233 (Bkrtcy.N.D.Ill.1981); In re Foster, 11 B.R. 476 (Bkrtcy.S.D.Cal. 1981). In discussing the mandatory nature of the time limit established in § 57(n) and the rules, Collier states:
3 Collier on Bankruptcy, ¶ 57.27 (14th Ed.). Strict adherence to the six month rule is the key to the effective administration of bankruptcy cases by providing the debtor, the trustee and creditors with a specific time within which all claims will have been filed. The language of the rule is unambiguous and specific.
The Bank argues that if the creditor attends hearings and is "in touch" with the Trustee or with the Court concerning its claim, then the six month filing deadline should be tolled. I disagree with that argument, and the contention that this late filing should be...
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