Sun Basin Lumber Co., Inc. v. United States

The sole issue in this appeal is whether the appellant-claimant was properly permitted to file an amended proof of claim in bankruptcy after the six month period provided by 11 U.S.C. § 93 (a) and (n) had expired. Appellant was a secured creditor, and after foreclosure and sale of collateral asserted an amended claim against the estate in the amount of the deficiency. Formal proof of claim for the deficiency was not filed within the statutory period. During that period, however, appellant did file an objection to the trustee’s petition to sell the real and personal property mortgaged to appellant and a petition to reclaim the property. He contends that these documents were sufficient to satisfy the time-bar of section 93 (n) and could be perfected by subsequent amendment.

The referee allowed the amendment. The district court took the contrary view. We agree with the referee.

“It is well settled that if there is upon the record in the bankruptcy proceedings, within the six months prescribed by § 57, sub. n, anything sufficient to show the existence, nature and amount of a claim, it may be amended even after expiration of the six month period.” 3 Collier on Bankruptcy, 14th ed., ¶…