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Is Anyone Still Out There? Effect of Claim Objection?
Claims objections may arise as follows in our consumer based cases, so
the answers may differ, with one constant, pointed out by Jim; i.e.,
claims in class are not paid until objections resolved for class.
Chapter 13: Not only is the claim disbursements to the class put on
hold, but the claim objection adds weight against an argument against
plan confirmation.
Chapter 7: Remember that the Debtor has the right to object to claims
to the extent the Trustee does not. Important issue where there may
be priority claims to be paid from proceeds, and the Debtor is
interested in maximizing the amount paid to otherwise nondischargeable
priority claims. Also, objection is important in case where there may
be surplus (ok, so not seen much these days, but you never know).
Chapter 11: In the case of what may refer to as the "Baby 11," claims
objections gives rise to denial of right vote on plan, in which case a
claimant whose claim is objected to may move for estimation of claim
for purposes of voting. But, you cannot use plan to object to claims
in Chapter 11 or Chapter 13 without full disclosure and adequate
notice of 30 days.
Lou Esbin
>
> The claim is put on hold. The t'ee does not pay until there is a
resolution. However, I believe she holds back on distribution to the
entire class (assuming a class five claim) if payment to other claim
holders in that class would prevent distribution to the objectionable
claim if the claim objection is overruled. Have a great holiday to
all of you out there burning the oil this late on a Friday. For me
rain means no golf on Friday.
>
>
>
Behalf Of P L
> Sent: Friday, May 23, 2008 5:39 PM
> To: cdcbaa@yahoogroups.com
> Subject: Re: [cdcbaa] Is Anyone Still Out There? Effect of Claim
Objection?
>
>
>
> I'm not certain of the answers, but by reading 11 USC 502(j)
regarding reconsiderations of claims and the language about payment,
non-payment and Trustee recovery I would guess that the Trustee
disburses on the claims (including the claim objected to) until the
objection is sustained and then the Trustee has a right to recover the
disbursed amount.
>
> Best regards,
>
> Peter
>
> "David A. Tilem" wrote:
>
> What is the impact of a claim objection?
>
> Are other claims paid while the objection is being resolved or are
all claim payments held up?
>
> Does the Trustee reserve a pro-rata share for the disputed claim or
disburse whatever is available to undisputed claims?
>
>
>
> David A. Tilem
>
> Certified Bankruptcy Specialist*
>
> Law Offices of David A. Tilem (a debt relief agency)
>
> 206 N. Jackson Street, #201, Glendale, CA 91206
>
> Tel: 818-507-6000 Fax: 818-507-6800
>
>
>
> * Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
>
> Business bankruptcy specialist cert. by Amer. Bd. of Certification
>
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The claim is put on hold. The tee does not pay until there is a resolution. However, I believe she holds back on distribution to the entire class (assuming a class five claim) if payment to other claim holders in that class would prevent distribution to the objectionable claim if the claim objection is overruled. Have a great holiday to all of you out there burning the oil this late on a Friday. For me rain means no golf on Friday.
The post was migrated from Yahoo.
I'm not certain of the answers, but by reading 11 USC 502(j) regarding reconsiderations of claims and the language about payment, non-payment and Trustee recovery I would guess that the Trustee disburses on the claims (including the claim objected to) until the objection is sustained and then the Trustee has a right to recover the disbursed amount.
Best regards,
Peter
"David A. Tilem" wrote:
What is the impact of a claim objection?
Are other claims paid while the objection is being resolved or are all claim payments held up?
Does the Trustee reserve a pro-rata share for the disputed claim or disburse whatever is available to undisputed claims?
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal Specialization.
Business bankruptcy specialist cert. by Amer. Bd. of Certification
I'm not certain of the answers, but by reading 11 USC 502(j) regarding reconsiderations of claims and the language about payment, non-payment and Trustee recovery I would guess that the Trustee disburses on the claims (including the claim objected to) until the objection is sustained and then the Trustee has a right to recover the disbursed amount. Best regards, Peter"David A. Tilem" <DavidTilem@TilemLaw.com> wrote: What is the impact of a claim
objection? Are other claims paid while the objection is being resolved or are all claim payments held up? Does the Trustee reserve a pro-rata share for the disputed claim or disburse whatever is available to undisputed claims? David A. Tilem Certified Bankruptcy Specialist
The post was migrated from Yahoo.
charset="windows-1251"
What is the impact of a claim objection?
Are other claims paid while the objection is being resolved or are all claim
payments held up?
Does the Trustee reserve a pro-rata share for the disputed claim or disburse
whatever is available to undisputed claims?
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
charset="windows-1251"
Message
What is the impact of a
claim objection?
Are other claims paid while
the objection is being resolved or are all claim payments held up?
Does the Trustee reserve a
pro-rata share for the disputed claim or disburse whatever is available toundisputed claims?
David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.