Do Objections To Claims Need To Be Served Like Adversary Proceedings?

29 Jul Do Objections To Claims Need To Be Served Like Adversary Proceedings?

No!  Objections to claims do not need to be served in the same manner under Bankruptcy Rule 7004 as Adversary Proceedings.  This is because even though an Objection to Claim is a Contested Matter generally covered by Bankruptcy Rule 9014, the claims objection process is further governed by Bankruptcy Rule 3007.

 

The Law is well established in this area.  Bankruptcy Rule 9014 does not apply to objections to claims. Rather, Bankruptcy Rule 9014 defers to Rule 3007 on the subject of claims since 9014(a) directly refers to “contested matters not otherwise governed by these rules.”  Rule 3007 calls for an objection, not a motion, and authorizes notice, rather than requiring service.  See In re Wylie, 2005 Bankr. LEXIS 3130 (Bankr. D. Mont. Dec. 7, 2005).

 

The majority of cases throughout the United States also support this position.  So generally, unless a creditor has filed a request for special notice, an objection to claim should be mailed to the address the creditor lists on the proof of claim.  This is because the proof of claim specifically advises the creditor of this fact:

 

Creditor’s Name and Address:

Fill in the name of the person or entity asserting a claim and the name and address of the person who should receive notices issued during the bankruptcy case. A separate space is provided for the payment address if it differs from the notice address. The creditor has a continuing obligation to keep the court informed of its current address. See Federal Rule of Bankruptcy Procedure. (FRBP) 2002(g).

So unless you are filing an adversary proceeding, forget about junping through all the notice procedures of Bankruptcy Rule 7004.  Instead, mail the objection first class mail(certified preferred) to the address on the proof of claim.  If the creditor fails to appear, then move for default.
Written by Michael G. Doan

 

 

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