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Judge A. Benjamin Goldgar

08 B 02560, 08 A 00182

Judge Jacqueline P. Cox

07 B 03856

Pro se creditor purchased a home from a third party in the debtor’s real estate development project. The creditor filed a timely proof of claim alleging repair items and building code violations. She subsequently filed several other claims after the claims bar date passed arguing that each amended her previous timely filed claim. The Court found that her attempted amendments asserted new claims that did not relate back to her original claim and that the new claims could not satisfy the excusable neglect standard for allowing a claim filed after the claims bar date. The creditor’s timely filed claim was denied because the debtor successfully met its burden in objecting the claim.


07 B 03856

Corporate creditor, through its vice president who is not an attorney, filed a claim against the debtor after the claims bar date passed. The debtor objected, arguing the claim was untimely filed. After obtaining counsel, the creditor argued that its claim should be allowed under the excusable neglect standard announced by the U.S. Supreme Court in Pioneer Inv. Services Co. v. Brunswick Assoc. L.P., 507 U.S. 380 (1993). The creditor specifically argued that when it filed its claim without counsel, it did not understand the complexities involved in filing a timely claim and that allowing its claim would have a de minimus impact on any potential distribution to the other creditors. The Court found that filing the claim without the aid of counsel was not excusable under the Pioneer test and that as a sophisticated business entity, the creditor should have recognized when an attorney was needed. The Court also found that allowing the claim would prejudice both the debtor and the other creditors who timely filed their claims since it would affect any distribution made.

Judge Jack B. Schmetterer

In re Willie Lee Linnear
January 29, 2008