Do you know what to do if you miss the bar date?
I won’t sugar-coat this. If you missed the bar date and filed your claim late, your claim will most likely be disallowed. This is done for many reasons, not the least of which being that debtors rely in part on the filed claims when formulating the plan of reorganization, a process bankruptcy courts reasonably do not want to disrupt. First, file it anyway. There’s no downside. Then, try doing triage, by reaching out to debtor’s counsel and asking for a mulligan. If that doesn’t work, your last chance is to ask the court.
The bankruptcy court will grant you the right to file your claim late under circumstances where the lateness was either beyond your control or due to excusable neglect. The standard for excusable neglect is high. Courts consider
whether the late-filed claim will prejudice the debtor;
how late the claim was filed, and whether it would negatively impact the case;
why the claim was filed late – whether it was truly beyond your control; and
the good faith (or lack thereof) on the part of the creditor.
The unfortunate fact is, if you received a bar date notice, the court is not likely to allow your late-filed claim. That said, if there is significant money at stake, call us to see if we can help you get your claim allowed as timely.
If you are a creditor whose customer has filed for bankruptcy, call us to see if you need to file a proof of claim or take other measures to protect your interests.
Attorney Advertising: Prior results do not guarantee similar outcomes.
Disclaimer: These materials have been prepared for general informational purposes only, and are not legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship.