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In re Austin (Case No. 15-70133) 10/5/16

Trustee sought court order to issue a notice of surplus funds to creditors in Chapter 7 case in which no proofs of claims had been filed prior to bar date and Debtor received an inheritance thereafter. The Court found that there would be authority for Trustee to make distributions on tardily-filed claims under 11 U.S.C. ยงยง 726(a)(2)(C) & (a)(3). Neither the Court nor the Clerk's office has authority to extend the bar date for timely filed claims, and there is likewise no authority for the Court or Clerk to solicit untimely claims via a notice of surplus funds. However, the Trustee is free to solicit tardily-filed proofs of claims at his own expense within a reasonable time. Once a reasonable time has passed, it is Trustee's duty and obligation to furnish a final report, close the case, and refund the remaining property of the estate to the Debtor.

Wednesday, October 5, 2016
Chapter 7 Issues
Proofs of Claim