United States Sixth Circuit

In Chapter 7 bankruptcy proceedings, the Bankruptcy Appellate Panel's (BAP) denial of plaintiff-creditor's motion to allow an informal proof of claim based on its prior filings as a putative secured creditor is affirmed as the BAP did not abuse its discretion in finding that: 1) plaintiff had ample notice of the likelihood that it would lose its status as a secured creditor, necessitating the filing of a proof of claim; 2) plaintiff's unexplained delay weighed against allowing plaintiff's informal proof of claim; and 3) the large dilution in the distribution to other creditors in this case was an appropriate consideration weighing against allowing plaintiff's claim.

Appellate Information

• Decided 11/13/2009
• Published 11/13/2009

Judges

• Before:  O'CONNOR, Associate Justice;   GILMAN and GIBBONS, Circuit Judges.

Court

• United States Sixth Circuit

Counsel

• For Appellees:
  
• ARGUED:  David A. Freeburg, McFadden & Freeburg Co., L.P.A., Cleveland, Ohio, for Appellant.  Lydia Evelyn Spragin, Akron, Ohio, for Appellee.   ON BRIEF:  David A. Freeburg, McFadden & Freeburg Co., L.P.A., Cleveland, Ohio, for Appellant.  Lydia Evelyn Spragin, Akron, Ohio, for Appellee.