(a) A claim or interest, proof of which is filed under
section
501 of this title, is deemed allowed, unless a party in interest,
including a creditor of a general partner in a partnership that is a debtor in
a case under chapter 7
of this title, objects.
(b) Except as provided in subsections
(e)(2), (f),
(g),
(h)
and (i)
of this section, if such objection to a claim is made, the court, after notice
and a hearing, shall determine the amount of such claim in lawful currency of
the United States as of the date of the filing of the petition, and shall
allow such claim in such amount, except to the extent that--
(1) such claim is unenforceable against the
debtor and property of the debtor, under any agreement or applicable law for
a reason other than because such claim is contingent or unmatured;
(2) such claim is for unmatured interest;
(3) if such claim is for a tax assessed against
property of the estate, such claim exceeds the value of the interest of the
estate in such property;
(4) if such claim is for services of an insider
or attorney of the debtor, such claim exceeds the reasonable value of such
services;
(5) such claim is for a debt that is unmatured on
the date of the filing of the petition and that is excepted from discharge
under section
523(a)(5) of this title;
(6) if such claim is the claim of a lessor for
damages resulting from the termination of a lease of real property, such
claim exceeds--
(A) the rent reserved by such lease, without acceleration, for the
greater of one year, or 15 percent, not to exceed three years, of the
remaining term of such lease, following the earlier of--
(i) the date of the filing of the petition; and
(ii) the date on which such lessor repossessed, or the lessee
surrendered, the leased property; plus
(B) any unpaid rent due under such lease, without acceleration, on the
earlier of such dates;
(7) if such claim is the claim of an employee for
damages resulting from the termination of an employment contract, such claim
exceeds--
(A) the compensation provided by such contract, without acceleration,
for one year following the earlier of--
(i) the date of the filing of the petition; or
(ii) the date on which the employer directed the employee to
terminate, or such employee terminated, performance under such contract;
plus
(B) any unpaid compensation due under such contract, without
acceleration, on the earlier of such dates;
(8) such claim results from a reduction, due to
late payment, in the amount of an otherwise applicable credit available to
the debtor in connection with an employment tax on wages, salaries, or
commissions earned from the debtor; or
(9) proof of such claim is not timely filed,
except to the extent tardily filed as permitted under paragraph (1), (2), or
(3) of section
726(a) of this title or under the Federal Rules of Bankruptcy Procedure,
except that a claim of a governmental unit shall be timely filed if it is
filed before 180 days after the date of the order for relief or such later
time as the Federal Rules of Bankruptcy Procedure may provide,
and except that in a case under chapter
13, a claim of a governmental unit for a tax with respect to a return
filed under section
1308 shall be timely if the claim is filed on or before the date that is
60 days after the date on which such return was filed as required.
(c) There shall be estimated for purpose of allowance
under this section--
(1) any contingent or unliquidated claim, the fixing or liquidation of
which, as the case may be, would unduly delay the administration of the
case; or
(2) any right to payment arising from a right to an equitable remedy for
breach of performance.
(d) Notwithstanding subsections
(a) and (b)
of this section, the court shall disallow any claim of any entity from which
property is recoverable under section
542, 543,
550,
or 553 of
this title or that is a transferee of a transfer avoidable under section
522(f), 522(h),
544,
545,
547, 548,
549,
or 724(a)
of this title, unless such entity or transferee has paid the amount, or turned
over any such property, for which such entity or transferee is liable under section
522(i), 542,
543,
550,
or 553 of
this title.
(e)
(1) Notwithstanding subsections
(a), (b),
and (c)
of this section and paragraph (2) of this subsection, the court shall
disallow any claim for reimbursement or contribution of an entity that is
liable with the debtor on or has secured the claim of a creditor, to the
extent that--
(A) such creditor’s claim against the estate is disallowed;
(B) such claim for reimbursement or contribution is contingent as of
the time of allowance or disallowance of such claim for reimbursement or
contribution; or
(C) such entity asserts a right of subrogation to the rights of such
creditor under section
509 of this title.
(2) A claim for reimbursement or contribution of such an entity that
becomes fixed after the commencement of the case shall be determined, and
shall be allowed under subsection
(a), (b)
or (c)
of this section, or disallowed under subsection
(d) of this section, the same as if such claim had become fixed before
the date of the filing of the petition.
(f) In an involuntary case, a claim arising in the
ordinary course of the debtor’s business or financial affairs after the
commencement of the case but before the earlier of the appointment of a
trustee and the order for relief shall be determined as of the date such claim
arises, and shall be allowed under subsection
(a), (b)
or (c)
of this section or disallowed under subsection (d) or (e) of this section, the
same as if such claim had arisen before the date of the filing of the
petition.
(g)
(1) A claim arising from the rejection, under section
365 of this title or under a plan under chapter
9, 11, 12,
or 13
of this title, of an executory contract or unexpired lease of the debtor
that has not been assumed shall be determined, and shall be allowed under
subsection
(a), (b)
or (c)
of this section or disallowed under subsection (d) or (e) of this section,
the same as if such claim had arisen before the date of the filing of the
petition.
(2) A claim for damages calculated in accordance with
section 562 shall be allowed under subsection (a), (b), or (c), or
disallowed under subsection (d) or (e), as if such claim had arisen before
the date of the filing of the petition.
(h) A claim arising from the recovery of property
under section
522, 550,
or 553 of
this title shall be determined, and shall be allowed under subsection
(a), (b)
or (c)
of this section, or disallowed under subsection
(d) or (e)
of this section, the same as if such claim had arisen before the date of the
filing of the petition.
(i) A claim that does not arise until after the
commencement of the case for a tax entitled to priority under section
507(a)(8) of this title shall be determined, and shall be allowed under subsection
(a), (b)
or (c)
of this section, or disallowed under subsection
(d) or (e)
of this section, the same as if such claim had arisen before the date of the
filing of the petition.
(j) A claim that has been allowed or disallowed may be
reconsidered for cause. A reconsidered claim may be allowed or disallowed
according to the equities of the case. Reconsideration of a claim under this
subsection does not affect the validity of any payment or transfer from the
estate made to a holder of an allowed claim on account of such allowed claim
that is not reconsidered, but if a reconsidered claim is allowed and is of the
same class as such holder’s claim, such holder may not receive any
additional payment or transfer from the estate on account of such holder’s
allowed claim until the holder of such reconsidered and allowed claim receives
payment on account of such claim proportionate in value to that already
received by such other holder. This subsection does not alter or modify the
trustee’s right to recover from a creditor any excess payment or transfer
made to such creditor.
(k)
(1) The court, on the motion of the debtor and after a
hearing, may reduce a claim filed under this section based in whole on an
unsecured consumer debt by not more than 20 percent of the claim, if--
(A) the claim was filed by a creditor who unreasonably refused to
negotiate a reasonable alternative repayment schedule proposed on behalf
of the debtor by an approved nonprofit budget and credit counseling agency
described in section
111;
(B) the offer of the debtor under subparagraph (A)--
(i) was made at least 60 days before the date of the filing of the
petition; and
(ii) provided for payment of at least 60 percent of the amount of the
debt over a period not to exceed the repayment period of the loan, or a
reasonable extension thereof; and
(C) no part of the debt under the alternative repayment schedule is
nondischargeable.
(2) The debtor shall have the burden of proving, by clear and convincing
evidence, that--
(A) the creditor unreasonably refused to consider the debtor's
proposal; and
(B) the proposed alternative repayment schedule was made prior to
expiration of the 60-day period specified in paragraph (1)(B)(i).
[Rev. 5-6-05]
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& Associates PLC Home Page
