(7th Cir. May 11, 2015)
The Seventh Circuit holds that Bankruptcy Rule 3002(c)’s proof of claim deadline applies to both secured creditors and unsecured creditors. The secured lender had filed its proof of claims months after the deadline in this Chapter 13 (90 days after meeting of creditors). The lender argued that Rule 3002(c) applied only to unsecured creditors. The bankruptcy court agreed and allowed the claim. The Seventh Circuit recognizes the split of authority on the issue but ultimately concludes that the deadline applies to all creditors. A secured creditor does not lose its lien but is barred from asserting the claim in bankruptcy if the deadline is missed. Opinion below.
Author: Matt Lindblom