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In re Breezewood Acres, Inc.

Citations: 28 B.R. 36; 1982 Bankr. LEXIS 3526Docket: Bankruptcy No. 77-759

Court: District Court, M.D. Pennsylvania; August 17, 1982; Federal District Court

Narrative Opinion Summary

In this case, the trustee objected to the proof of claim 294 filed by Breezewood Acres Community Association, Inc., citing its untimely submission under bankruptcy law. The claim was submitted on March 21, 1980, more than six months after the first creditors' meeting on December 9, 1977. According to Section 57n of the Bankruptcy Act of 1898 and Bankruptcy Rule 302(e), claims must be filed within six months of the first meeting of creditors unless specific exceptions apply, which were not present here. The Third Circuit has consistently upheld a strict interpretation of these deadlines, as demonstrated in precedents like In Re Pigott and In Re Mellen Manufacturing Co., and the court lacks equitable authority to extend the filing period. Consequently, the court disallowed the claim, stating its findings of fact and conclusions of law under Bankruptcy Rule 752. This decision underscores the importance of adhering to procedural deadlines in bankruptcy proceedings and affirms the court's commitment to enforcing statutory timelines without exception.

Legal Issues Addressed

Filing Deadline under Bankruptcy Act of 1898

Application: The court disallowed the claim filed by Breezewood Acres Community Association, Inc. because it was submitted after the six-month deadline outlined in Section 57n of the Bankruptcy Act of 1898.

Reasoning: Under Section 57n of the Bankruptcy Act of 1898 (formerly 11 U.S.C. 93(n)), claims must be filed within six months of the first meeting to be considered valid, with exceptions that do not apply in this case.

Judicial Authority under Bankruptcy Rule 752

Application: The court issued findings of fact and conclusions of law pursuant to Bankruptcy Rule 752 in disallowing the claim.

Reasoning: This opinion serves as findings of fact and conclusions of law per Bankruptcy Rule 752.

Role of Bankruptcy Rule 302(e)

Application: Bankruptcy Rule 302(e) reaffirmed the six-month filing deadline, and the court found no applicable exceptions to allow for the late filing.

Reasoning: Bankruptcy Rule 302(e) reiterates this six-month deadline, also lacking applicable exceptions.

Strict Interpretation of Filing Deadline

Application: The court adhered to the Third Circuit's strict interpretation of the filing deadline, as the claim was filed over six months after the first creditors' meeting.

Reasoning: The Third Circuit has consistently enforced a strict interpretation of this timeframe, as established in cases such as In Re Pigott and In Re Mellen Manufacturing Co., and lacks equitable authority to extend the filing period.