Upon further review: Trustee's disallowance of a previously allowed claim
June 2012
Authors
Randal S. Van de Mosselaer,
Justin D. Doll
What options does a trustee in bankruptcy have when it initially allows a proof of claim only to discover that the claim ought to have been disallowed? Can a trustee simply disallow the previously allowed claim, or is something more required? The recent case of First Capital Management (Re)1 considered the circumstances in which a proposal trustee would be entitled to revise a notice of disallowance that had the effect disallowing part of a proof of claim and allowing another part of the same proof of claim pursuant to s. 135 of the Bankruptcy and Insolvency Act.2
Download the full publication here.
Back to top