Motion for Order for Allowance and Future Payment on Untimely Filed Claim denied because proof of claim did not meet timeliness requirement

In re Ashworth
Case No. 09-03648-TLM
Decision Date: 1/28/2011
Chapter 13

Debtors filed a chapter 13 petition with a Plan that stripped-off the second mortgage of the debtor’s residence held by HSBC Mortgage. The Plan was confirmed. The holder of the first position secured claim on the Debtor’s residence received relive from the 362(a) automatic stay and HSBC filed a “Motion for Order for Allowance and Future Payment on Untimely Filed Claim(s)” on the basis of “excusable neglect” but cited no support. Debtor’s and Chapter 13 Trustee objected. Trustee’s specifically objected to the motion and also requested an order that the late filed claim not be allowed.
HSBC argued that even if the motion is denied the Court should find the untimely claim “deemed allowed pursuant to section 502(a).” 502 speaks to whether a claim is deemed allowed but not to the issue of timeliness. Rule 3002(c) governs timeliness in chapter 13 cases and requires proof of claims be filed with in 90 days of the first date set for the 341(a) meeting to be timely filed. In this case HSBC’s proof of claim was filed outside this 90 day requirement. Trustee’s Objection was sustained.

Full decision HERE

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