Date of Decision:
January 3, 2008
Whether creditor who did not timely file an actual proof of claim after the case converted from Chapter 11 to Chapter 7 is entitled to participate in an interim distribution where the creditor was not required to file a proof of claim during the Chapter 11?
Federal Rule of Bankruptcy Procedure 1019(3) requires all unsecured creditors to file a proof of claim after conversion of the case from Chapter 11 to Chapter 7 if the creditor did not actually file a proof of claim during the Chapter 11. An informal proof of claim that may have been recognizable during the Chapter 11 does not constitute an actually-filed proof of claim recognizable post-conversion.
Full Bankruptcy Court Decision: