Bankruptcy Rule 9006(b) cannot be invoked to allow a late-filed claim in chapter 13 on the grounds of excusable neglect, according to the Sixth Circuit Bankruptcy Appellate Panel.
The debtors confirmed their chapter 13 plan in late January 2015. The creditor filed its claim in early March 2015, eight days after the bar date. Citing excusable neglect, the bankruptcy court allowed the late-filed claim.
The debtor appealed and won in a May 11 opinion authored for the three-judge appellate panel by Bankruptcy Judge Guy R. Humphrey.
The BAP agreed with the debtors’ argument that Section 3002(c) provides the only six exceptions allowing a claim after the bar date. Because none applied, the appellate panel reversed.
Bankruptcy Rule 9006(b) allows late-filed claims for “excusable neglect,” but that rule by its terms does not apply to the deadline set by Rule 3002(c), the panel said.
To circumvent the prohibition to allowing late claims that arises from the combination of Rules 9006(c) and 3002(c), the creditor contended that the bankruptcy court properly exercised its “inherent equitable authority under Section 105.”
To that argument, the panel said, “[I]t is hornbook law that Section 105(a) does not allow the bankruptcy court to override explicit mandates of other sections of the Bankruptcy Code.” The appellate panel went further by saying that Section 105 cannot be used “even if the equities weigh against disallowing late filed claims.”
Finally, the panel held that the doctrine of equitable tolling could not be used to allow a late claim.