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The Security National Bank of Sioux City, IA v. Vera T. Welte Testamentary Trust

Summarizing by Amir Shachmurove

In re Tench

Case No. 15-8026 (6th Cir. BAP 2016)
There is no provision in Chapter 13 for a proof of claim filed after the bar date. Rule 3002 sets bar date that can be expanded only for specific grounds which did not apply. Rule 9006 did not allow extension of time to file claim. Neither Section 105 nor "equitable tolling" authorize Court to ignore bar date.
Procedural context:
Debtor objected to a proof of claim filed after the Bar Date and Creditor filed a Motion to Allow Late Filed Claim. Bankruptcy Court granted Creditor's Motion and allowed claim based on excusable neglect. On appeal, Bankruptcy Appellate Panel reversed and remanded to Bankruptcy Court.
Creditor received notice of bankruptcy case about 6 weeks before bar date but due to internal error, did not file claim until 8 days after the bar date. After Debtor objected, Creditor sought to have late filed claim allowed. Bankruptcy Appellate Panel held that Chapter 13 did not have exception in Rule 3002 to deadline to file claim. Rule 9006 does not allow Court to extend time even on showing of excusable neglect. Neither Section 105 nor "equitable tolling" could be used to circumvent clear deadline set forth in Rule 3002. Even if equitable tolling could be used, it would require that creditor acted with diligence. Here, Creditor had notice of bankruptcy filing for approximately 6 weeks before deadline expired yet failed to file claim. Creditor's negligence in failing to file claim demonstrates a lack of diligence.
Delk, Humphrey, Opperman

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