Lundell

We are asked to decide whether, upon objection to a proof of claim filed pursuant to 11 U.S.C. § 501 , a bankruptcy court improperly allocated the burden of proving the invalidity of the claim on the objector by discounting in its entirety his testimony in support of his objection. We hold that the bankruptcy court properly allocated the burdens of proof and persuasion.

I

This action arises out of the failure by West Coast Construction (“West Coast”), a construction company formed by Ronald and Lloyd Hawkins (“the Hawkins”), to complete several federal construction projects awarded to it and to subsequently pay subcontractors, including Anchor Construction .Specialists, Inc., and three other claimants (collectively, “claimants” or “appellants”), for their work.

Debtor Dwight Lundell, a childhood friend of the Hawkins, became involved in West Coast when the Hawkins sought financial help in starting West Coast. Lun-dell initially loaned several hundred thousand dollars to West Coast and acted as surety for bonds required to obtain federal construction contracts. The Hawkins and Lundell later entered into a clearly marked partnership agreement, signed by Lundell and notarized by…