Matter of Andrew
Decision Date | 29 December 1993 |
Docket Number | Bankruptcy No. 92-53464. |
Citation | 162 BR 46 |
Parties | In the Matter of Steven ANDREW, Debtor. |
Court | U.S. Bankruptcy Court — Middle District of Georgia |
Judson H. Hill, Asst. U.S. Atty., Macon, GA, for I.R.S.
George O. Haskell, III, Macon, GA, for debtor.
Camille Hope, Macon, GA, Chapter 13 Trustee.
Camille Hope, Standing Chapter 13 Trustee, filed an Objection to Claim on June 4, 1993. The Internal Revenue Service ("IRS")1 filed a response on August 4, 1993. A hearing was held on September 9, 1993. The Court, having considered the record and the briefs of counsel, now publishes this memorandum opinion.
Steven Andrew, Debtor, filed a petition under Chapter 13 of the Bankruptcy Code on November 6, 1992. He scheduled, as an unsecured priority debt, an income tax liability for the 1991 tax year in the amount of $106. The bar date for filing a proof of claim in Debtor's bankruptcy case was March 8, 1993.
The IRS timely filed a proof of claim for 1991 taxes in the amount of $1,500. The claim was an estimate of Debtor's tax liability. The IRS later determined that Debtor's 1991 tax liability was $1,142 and that his 1990 tax liability was $1,056.92. On May 26, 1993, the IRS filed an amended proof of claim, reflecting its claim for the 1990 and the 1991 tax years plus certain prepetition interest. Trustee filed an objection to the portion of the amended proof of claim that sought to add the 1990 taxes. Trustee contends this portion of the claim was not timely filed and should be disallowed. Trustee does not object to the IRS's claim for the 1991 taxes.
The IRS contends that its claim for 1990 taxes, "while `untimely' should nevertheless not be disallowed because it was filed `untimely.'" The IRS relies on In re Hausladen,2 an en banc decision by the Bankruptcy Court of Minnesota. In In re Hausladen, the issue was "whether a claim filed in a Chapter 13 case after the 90-day deadline set by Rule 3002(c) of the Federal Rules of Bankruptcy Procedure should be disallowed?"3 The court held that an untimely filed claim must be allowed but may be classified for treatment under the Chapter 13 plan. The court stated:
At least one court has agreed with the holding of In re Hausladen. See General Motors Acceptance Corp. v. Judkins (In re Judkins), 151 B.R. 553, 555 (Bankr.D.Colo. 1993) ( ).
A number of courts have disagreed with the holding of In re Hausladen. See In re Osborne, 159 B.R. 570 (Bankr.C.D.Cal.1993); In re Crooker, 159 B.R. 790 (Bankr.E.D.Ky. 1993); United States v. Messics (In re Messics), 159 B.R. 803 (Bankr.N.D.Ohio 1993); In re Anderson, 159 B.R. 830 (Bankr.N.D.Ill. 1993); In re Turner, 157 B.R. 904 (Bankr. N.D.Ala.1993); In re Johnson, 156 B.R. 557 (Bankr.N.D.Ill.1993); In re Zimmerman, 156 B.R. 192 (Bankr.W.D.Mich.1993); In re Stoecker, 151 B.R. 989 (Bankr.N.D.Ill.1992); In re Bailey, 151 B.R. 28 (Bankr.N.D.N.Y. 1993).
In In re Zimmerman, an en banc decision by the bankruptcy court for the Western District of Michigan, the court disagreed with In re Hausladen and stated:
Federal court rules are promulgated under the authority of an enabling statute. The enabling statute for the federal rules of bankruptcy procedure gives the United States Supreme Court the power to promulgate rules which do "not abridge, enlarge, or modify any substantive right." 28 U.S.C. § 2071. Often, the Supreme Court will appoint an advisory committee to draft the rules. These rules are presented to Congress for passive acceptance and take effect if Congress does not strike a rule within a set time period after presentment. Id. A similar procedure exists for the federal rules of civil procedure. See 28 U.S.C. § 2072. Court rules are strongly presumed to be within the guidelines of their enabling statute because they are drafted by the judges who must rule on their validity. Hanna v. Plumer, 380 U.S. 460, 471, 85 S.Ct. 1136, 1144, 85 S.Ct. 1136, 11, 14 L.Ed.2d 8 (1965). Moreover, the rules are presumed to reflect Congress\'s intent because Congress acquiesces to their acceptance. Sibbach v. Wilson & Co., 312 U.S. 1, 14-15, 61 S.Ct. 422, 427, 85 L.Ed. 479 (1941).
In The Charter Co. v. Dioxin Claimants (In re The Charter Co.),4 the Eleventh Circuit Court of Appeals stated:
Under chapter 11 of the Bankruptcy Code, certain claimants against an estate in bankruptcy must file proofs of claim in order to participate in a reorganization and obtain any monetary satisfaction. Bankruptcy Rule 3003(c). In order to ensure finality, Bankruptcy Rule 3003(c)(3) provides that "the court shall fix . . . the time within which proofs of claim or interest may be filed." After passage of this time, referred to as the bar date, the claimant cannot participate in the reorganization unless he establishes sufficient grounds for the failure to file a proof of claim.
In ITT Commercial Finance Corp. v. Dilkes (In re Analytical Systems, Inc.),5 the Eleventh Circuit Court of Appeals stated:
A proof of claim is a "written statement setting forth a creditor\'s claim," Bankruptcy Rule 3001, which creditors must file with the bankruptcy court in order for their claims to be allowed. 11 U.S.C. § 501, Bankruptcy Rule 3002.
The filing of a proof of claim in a Chapter 13 case is governed by Bankruptcy Rule 3002.6 Rule 3002(a) provides:
Fed.R.Bankr.P. 3002(a) (emphasis added).
The Court is persuaded that Rule 3002(a) clearly states that an unsecured creditor in a Chapter 13 case must file a proof of claim for the claim to be allowed. See United States v. Ron Pair Enterprises, Inc., 489 U.S. 235, 241, 109 S.Ct. 1026, 1030, 103 L.Ed.2d 290 (1989) ( ).
The Court is persuaded that In re Hausladen was not correctly decided. It ignores the clear language of Rule 3002. The Court is persuaded that the IRS's untimely claim for 1990 taxes must be disallowed.
The IRS also contends that the Court should allow its untimely claim upon equitable considerations. The IRS relies upon In re Miss Glamor Coat Co.,7 a case cited by the Eleventh Circuit Court of Appeals in United States v. International Horizons, Inc. (In re International Horizons, Inc.8 In In re Miss Glamor Coat Co., the court listed the following equitable factors:
A creditor, of course, cannot bypass the requirement to file a timely proof of claim by relying on general principles of equity. See generally In re Analytical Systems, Inc., 933 F.2d at 942 (citing Maressa v. A.H. Robins Co., Inc., 839 F.2d 220, 221 (4th Cir.), cert. denied, 488 U.S. 826, 109 S.Ct. 76, 102 L.Ed.2d 53 (1988)). ("The clear Congressional intent to require filing of valid proofs of claims within the established time limits precludes any exceptions based on general equitable principles.").
The IRS contends that a computer code message did not appear on Debtor's account until after the expiration of the bar date. The IRS contends that its failure to file a timely proof of claim for 1990 taxes was not intentional. The IRS submits that the timely claim for 1991 taxes gave Debtor and creditors reason to believe that...
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