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§ 502(j)

In re Coxeter

Ruling
Reconsideration of disallowance of claim granted where local counsel engaged by creditor failed to appear due to suspension from practice prior to hearing.
Procedural posture

Bankruptcy debtors objected to a creditor's judgment claim but the creditor failed to appear for the hearing on the objection. The creditor moved pursuant to 11 U.S.C.S. § 502(j) and Fed. R. Bankr. P. 3008 for reconsideration of the order disallowing the creditor's claim by default.

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Consumer opinion summary, case decided on December 10, 2009 , LexisNexis #0110-132

In re PT-1 Communs. Inc.

Ruling
Creditor that did not act in a timely fashion in response to debtor's objection was not entitled to relief from reduction of claim.
Procedural posture

Debtor corporations filed petitions for relief under chapter 11 of the Bankruptcy Code, and a creditor's agent filed a proof of claim on the creditor's behalf. The bankruptcy court reduced the creditor's claim from $ 5,745,552 to $ 2,526,670, and two years later, the creditor asked for reconsideration. The bankruptcy court denied the creditor's motion for reconsideration, but the district court set aside that judgment and remanded the case.

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Commercial opinion summary, case decided on August 28, 2009 , LexisNexis #0909-138

Shepard v. Hood (In re Shepard)

Ruling
Adversary proceeding to enforce order sustaining debtor's unopposed objection to proof of claim dismissed due to improper notice of original objection, which was vacated.
Procedural posture

Plaintiff debtor filed an adversary proceeding against defendants, two creditors, the former wife of the debtor and the county department charged with collecting child support from the debtor, seeking declaratory relief enforcing an order sustaining the debtor's objection to the county's claim. The creditors moved to dismiss the adversary proceeding, based on their lack of actual notice of the debtor's objection.

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Consumer opinion summary, case decided on June 12, 2009 , LexisNexis #0809-081

In re Tender Loving Care Health Servs.

Ruling
Bankruptcy court erroneously granted trustee's motion for reconsideration reducing payments to creditor under negotiated agreement as debtor had initially objected to claim and motion was untimely.
Procedural posture

Appellant creditor, which had a general unsecured claim based on a promissory note, sought review of a decision of the United States District Court for the Eastern District of New York, which affirmed the bankruptcy court's order denying its motion to compel payment on a claim and granted the cross-motion of appellee, the debtor's successor (hereinafter, the debtor) for reconsideration of allowance of the claim.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on March 26, 2009 , LexisNexis #0509-062

Butler v. Ormet Corp.

Ruling
Time-barred wrongful discharge claim properly disallowed by bankruptcy court.
Procedural posture

Appellant, a claimant in a chapter 11 case, challenged a denial, by the Bankruptcy Court for the Southern District of Ohio, of a Fed. R. Civ. P. 59(e) motion for reconsideration of its denial of an earlier motion under 11 U.S.C.S. § 502(j) and Fed. R. Bankr. P. 3008 to set aside the order disallowing his claim against appellee debtors. At issue was whether the bankruptcy court had abused its discretion in so ruling.

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Commercial opinion summary, case decided on January 13, 2009 , LexisNexis #0309-031

Protease Sciences Inc. v. Arriva Pharms. Inc. (In re Arriva Pharms. Inc.)

Ruling
Claims based on vacated jury verdict and claims filed in violation of state court injunction were properly disallowed.
Procedural posture

Plaintiff appellants, alleged creditors of the debtor, challenged an order of the United States Bankruptcy Court for the Northern District of California, that denied relief in four separate appeals: the disallowance of a claim based on a vacated jury verdict; the dismissal of an adversary complaint for lack of standing; the disallowance of two proofs of claim allegedly filed in violation of an injunction issued in an Arizona state court action.

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Commercial opinion summary, case decided on August 01, 2008 , LexisNexis #0908-046

In re Jefferson

Ruling
Debtors were allwoed to modify plan since they were acting in good faith and section 502(j) allowed for reconsideration for cause and based on equities of case.
Procedural posture

After their chapter 13 plan was confirmed, movant debtors sought to modify the plan because one of the debtors had becomes disabled postconfirmation. The debtors sought to surrender two vehicles to the respective creditors and to reduce their plan payments accordingly. Only one of the two affected creditors filed a response to the motion.

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opinion summary, case decided on June 14, 2006 , LexisNexis #0706-127

In re McBride

Ruling
Creditor's deficiency claim was disallowed since the creditor did not reserve a right of relief from potential deficiency.
Procedural posture

A bankruptcy debtor's chapter 13 plan was confirmed and provided for monthly payments to a creditor whose debt was secured by the debtor's vehicle but, upon the debtor's failure to make the plan payments, the creditor repossessed and sold the vehicle. The creditor submitted an amended claim for deficiency, and the debtor moved to disallow the claim.

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opinion summary, case decided on January 09, 2006 , LexisNexis #0206-033