ABI’s 19th Annual Winter Leadership Conference: Committee Educational Session
The Court Administration committee will meet on Saturday, Dec. 8, from 9:30 to 11:00 a.m. to discuss ECF and Issues Surrounding Proofs of Claim.
The panel will include: Kelly Beaudin Stapleton – Moderator (Office of the U.S. Trustee; Philadelphia), Kathy L. Yeatter (Wells Fargo Trumbull; New York), Kenneth M. Freda (The Garden City Group, Inc.; Melville, N.Y.) and Barry K. Lander (U.S. Bankruptcy Court; San Diego).
Demystifying the Claims Administration Process
by: Evelyn J. Meltzer
Pepper Hamilton LLP; Wilmington, Del.
by: Howard A. Cohen
Drinker, Biddle & Reath LLP; Wilmington, Del.
To most creditors, the claims administration process is mysterious and baffling. This is because most creditors simply do not understand what happens from the time a claim is asserted (either via the debtor’s schedules or by filing a proof of claim) to the time that distributions on account of such claims are actually made to creditors. Because in a large chapter 11 case, years can pass without a creditor hearing anything regarding the status of its claim, many creditors make the mistake of thinking no news is good news. Unfortunately, this is not necessarily the case. Just because a creditor has not heard from the debtor regarding its claim does not mean that its claim will ultimately be allowed. Rather, during this time, the debtor is hard at work directing the claims administration process. Failure to understand the claims administration process can result in a creditor’s claim being reclassified, reduced or even disallowed. This article addresses key steps that occur during the claims administration process and the hazards that exist for the unwary creditor.