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In re Nieber, Case No. 18-10568 EEB

Date:
Case Number:
18-10568

Individual husband and wife farmers and their related corporate entity filed jointly administered chapter 12 cases.  A creditor holding an unsecured claim against all the debtors filed a proof of claim in only the individual debtors’ case.  Following plan confirmation, the creditor filed a motion asking the Court to deem its timely filed proof of claim in the individual debtors’ case to also be an allowed proof of claim in the corporate debtor’s case by treating it as either a claim amendment or an informal proof of claim.  The Court denied the motion, noting that the creditor’s failure to file any written document seeking repayment in the corporate debtor’s case prevented the creditor from having an informal proof of claim or a claim amendment.  The Court concluded that it lacked discretion to consider the equities and noted the historical reasons for why the current rules favor a strict adherence to the time deadline for filing claims in chapters 7, 12, and 13.