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§ 726(a)

American Express Bank v. Ashkenaizer (In re Plourde)

Ruling
Credit card creditors' claims allowed subject to subordination to extent not compensation for actual pecuniary loss.
Procedural posture

Appellant creditor sought review of an order from the United States Bankruptcy Court for the District of New Hampshire, which disallowed its general unsecured claim for $ 42,452 in credit card debt. The chapter 7 trustee appealed the bankruptcy court's order allowing another credit card creditor's general unsecured claim in the amount of $ 6,309. The trustee also appealed the court's denial of his request for an award of attorney's fees.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on October 19, 2009 , LexisNexis #1109-070

In re MMH Auto Group LLC

Ruling
Untimely filed claim subordinated to all timely filed claims.
Procedural posture

Movant, the chapter 7 trustee, asked the court to deem untimely a claim filed by the brother of the owner of debtor corporation, which debtor had owned an auto dealership, and to subordinate such claim to all timely-filed claims in certain substantively consolidated cases pursuant to 11 U.S.C.S. § 726(a)(3).

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Commercial opinion summary, case decided on December 05, 2008 , LexisNexis #0309-138

In re Cincom iOutsource Inc.

Ruling
Proof of claim failed after creditor was added to amended schedule was deemed timely.
Procedural posture

Debtor corporation filed a petition under chapter 7 of the Bankruptcy Code, and a trustee was appointed to represent the bankruptcy estate. Movant creditor filed a proof of claim after the deadline established by the court, and moved for an order deeming its proof of claim as timely. The trustee and another creditor opposed the creditor's motion.

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Commercial opinion summary, case decided on November 20, 2008 , LexisNexis #0109-021

In re Morande Enters.

Ruling
FICA tax penalty claim subordinated to claims of unsecured creditors,
Procedural posture

A corporate debtor filed a petition under chapter 11, and creditor IRS filed a claim in the amount of $55,005.16, based on penalties relating to the debtor's nonpayment of FICA tax obligations to the U.S. The debtor filed a motion to subordinate the IRS'claim.

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opinion summary, case decided on June 29, 2007 , LexisNexis #0907-066

In re Duda

Ruling
Late proof of claim allowed where healthcare facility was not properly served with notice.
Procedural posture

Appellant debtor appealed from an order of the bankruptcy court, which dismissed the objections of debtor to a proof of claim filed by appellee healthcare facility. The case implicated 11 U.S.C. § 726 and Fed. R. Bankr. P. 3002(c), inter alia.

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opinion summary, case decided on May 15, 2007 , LexisNexis #0607-134

In re Best

Ruling
Creditor's claim for postpetition interest on state court judgment at rate allowed by state law disallowed to the extent exceeding federal judgment interest rate.
Procedural posture

A chapter 7 trustee filed a motion seeking an order disallowing a creditor's claim to the extent that it asserted a right to postpetition interest calculated at the rate that applied under the state law that governed the claim. At issue was the meaning of the phrase "legal rate" as used in 11 U.S.C. § 726(a)(5) and whether it was the same as the rate under 28 U.S.C. § 1961.

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opinion summary, case decided on April 03, 2007 , LexisNexis #0507-028

In re Fink

Ruling
Adversary proceeding and motion for relief from stay did not constitute informal proof of claim.
Procedural posture

The matter was before the court in connection with the chapter 7 trustee's objection to a proof of claim filed by a claimant, debtor's ex-wife.

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opinion summary, case decided on March 15, 2007 , LexisNexis #0507-101

In re Larison

Ruling
Proof of claim filed more than 30 days after close of adversary proceeding from which it arose was to be treated as an untimely, unsecured claim.
Procedural posture

A chapter 7 trustee filed a motion seeking approval of a proposed final accounting and distribution of the assets from two joint debtors'bankruptcy estate. A creditor filed an objection, contending that it had timely filed its unsecured claim under 11 U.S.C. § 502(h) and was entitled to full payment of it.

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opinion summary, case decided on December 20, 2006 , LexisNexis #0207-100

In re Neilsen

Ruling
Creditor with notice who failed to advise court of correct mailing address was not entitled to file late proof of claim based on failure of notice of distribution.
Procedural posture

Creditor filed a motion to allow a late filed proof of claim, seeking a ruling that the tardily filed claim could be treated as a timely filed claim and share in distributions pro rata with timely filed claims under 11 U.S.C. § 726(a)(2)(C).

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opinion summary, case decided on November 22, 2006 , LexisNexis #0107-066

In re Brown

Ruling
Debtor's motion to purchase cause of action from estate in closed case granted over objection of potential defendant.
Procedural posture

After bankruptcy debtors'case was closed, the debtors'former mortgagee filed an eviction action against the debtors and the debtors counterclaimed on the ground that the mortgagee engaged in improper debt collection activities. After the case was reopened, the trustee moved for leave to release the debtors' prepetition cause of action against the mortgagee to the debtors in exchange for a cash payment.

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opinion summary, case decided on September 01, 2006 , LexisNexis #1106-099