Barker v. Eiler (In re Principia Equitas)

Case Type:
Case Status:
BAP No. OR-18-1128-SKuF (9th Circuit, Mar 28,2019) Not Published
BAP for 9th Circuit affirmed ruling of bankruptcy court (D. Or.) denying non-debtor principal's claim objection against secured creditor who had not filed proof of claim. Secured creditor did not file proof of claim. Secured creditors are not required to file proofs of claim in no asset chapter 7 cases. Secured creditors cannot be forced to adjudicate claims in bankruptcy case.
Procedural context:
Non-debtor principal of debtor filed motions in bankruptcy court seeking to object to Bank's secured claim. Bankruptcy court (D. Or.) denied motions. Movant appealed to BAP for 9th Circuit.
Individual (Barker) was sole owner and managing member of chapter 7 debtor LLC. Prior to the bankruptcy, Barker had been litigating in nonbankruptcy courts with the alleged holder of the first deed of trust, challenging the legitimacy of the deed of trust. After placing the entity into bankruptcy, the chapter 7 trustee issued a no-asset report. The secured creditor did not file a proof of claim. Barker filed motions objecting to the secured creditor's secured claim.
Spraker, Kurtz, Faris

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