14 B 34232
Chapter 7 trustee objected to creditor’s proof of claim, asking the court to reclassify it from secured to unsecured and to reduce the amount. Held: (1) an objection to claim was the proper procedural posture to resolve the matter; (2) due to the debtor’s delays, a state court citation proceeding did not expire prepetition, thus the creditor had a citation lien on the petition date; (3) nevertheless, the creditor waived its secured claim by its actions in the bankruptcy case; and (4) since the creditor was a landlord whose claim resulted from lease termination, 11 U.S.C. § 502(b)(6) capped its claim.
Judge:
Date:
Thursday, October 22, 2020