Bankruptcy Proof of Claims

bankruptcy Proof of Claims

Proof of Claims Deadlines are Very Strict

Below is an example of when Debtor appealed and won a creditors late filing:

The IRS is held to the same standards as anyone else in bankruptcy.   If the IRS is Asleep at the Wheel, they lose.   

  • IRS began collection efforts for penalties on a Debtor’s business for failing to pay $93,000 withholding taxes.
  • Shortly after the collection began, the Debtor filed bankruptcy.
  • IRS filed a Proof of Claim.
  • Debtor did not agree with the IRS’s Proof of Claim
  • Debtor filed an objection and sent a copy to the address on the Proof of Claim.

21 days passed and the IRS sat on their rights and did not file a response.   The Bankruptcy Court sustained the objection and disallowed the IRS’s Proof of Claim.  

Even though the IRS was late in filing their Bankruptcy Proof of Claim response, they moved to vacate the Order disallowing its Proof of Claim.  The Bankruptcy Court agreed with the IRS and vacated the Order.

The Debtor’s attorney appealed to the District Court and the Order of the Bankruptcy Court was affirmed and claim was allowed.

The Debtor strongly disagreed with the Court’s ruling.   As a result, the Debtor’s bankruptcy lawyer  appealed to the 8th Circuit Court of Appeals and the matter was reversed and remanded.

Appellant Court agreed with the Debtor and the IRS’ bankruptcy mistake of a 93 thousand dollar claim is not allowed.

As you can see, the Debtor won.   It pays to appeal and fight for your debtor rights in Bankruptcy.  The IRS fell asleep at the wheel.    Deadlines work both ways – IRS must follow deadlines as all taxpayers must.

Bankruptcy is a specialized field and you should always hire a Board Certified Attorney to fight for your rights.


I am here to help you.   Call me:    Ralph A. Ferro, Jr., Esq.  (201) 446-5904  Board Certified Bankruptcy Attorney in Consumer Law