How is the burden of proof allocated?

Under FRBP 3001(f), a proof of claim filed in proper form is prima facie evidence of the validity and amount of the claim. The objector must produce evidence sufficient to negate that prima facie effect. Once the objector does so, the burden shifts back to the creditor to prove the claim by a preponderance of the evidence. Most consumer objections turn on documentation gaps.

What are common grounds for objection?

Common grounds: claim is unenforceable under applicable contract law or statute of limitations; claim lacks supporting documentation under FRBP 3001(c); claim duplicates another filed claim; secured claim asserts a security interest that was never perfected; claim asserts post-petition interest or fees not allowed under § 502(b)(2); priority is misstated; and creditor lacks standing because the loan was sold but the assignment is not properly evidenced.

How long do I have to object to a claim?

There is no fixed federal statutory deadline. Many districts set an objection deadline in the local rules or by chapter-specific order. In Chapter 13 the practical deadline is before the plan is confirmed because confirmation generally treats allowed claims as established under § 1327. In Chapter 7 objections must be filed before the case is closed under § 350(a).

What documentation must a proof of claim include?

FRBP 3001(c) requires the claim form to be accompanied by a copy of the writing on which the claim is based. For credit-card and similar revolving debts, the claim must include statements of account history and itemizations of fees, interest, and charges. For mortgage claims, FRBP 3001(c)(2) requires Itemized Statements and Mortgage Proof of Claim Attachment. Many objections succeed when the creditor cannot produce the required attachments.

What happens if my objection is sustained?

The claim is disallowed in whole or in part. Disallowance reduces the pool of allowed claims, which can change the dividend payable to other creditors in an asset case or, in Chapter 13, reduce required plan payments. A disallowed unsecured claim is no longer entitled to a distribution from the estate. The creditor's option after disallowance is generally an appeal under 28 USC § 158.

Objections to Claim in Bankruptcy: § 502 and FRBP 3007

An objection to claim is a formal contested matter in which the debtor, trustee, or another party in interest disputes a proof of claim filed by a creditor. 11 USC § 502(b) lists nine grounds for disallowance, including unenforceability under applicable law, untimeliness, and amounts not yet matured under the bankruptcy code. Federal Rule of Bankruptcy Procedure 3007 governs the procedure.

The Prima Facie Effect of a Filed Claim

Under FRBP 3001(f), a properly executed and filed proof of claim "shall constitute prima facie evidence of the validity and amount of the claim." That presumption shifts the burden: the debtor or trustee challenging the claim must produce evidence sufficient to overcome the presumption before the burden shifts back to the creditor to prove the claim by a preponderance of the evidence.

Translating into practice: the objector must do more than say "I don't think I owe this." The objector must point to specific defects, missing documentation, or substantive defenses that put the claim's validity or amount in question.

Statutory Grounds Under § 502(b)

11 U.S.C. § 502(b) enumerates nine grounds on which a court must disallow or reduce a claim. The most commonly invoked:

§ 502(b)(1): The 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. This is the catch-all ground for substantive defenses (statute of limitations, lack of standing, settlement, payment, etc.).
§ 502(b)(2): Claim is for unmatured interest. Post-petition interest on unsecured claims is generally not allowed.
§ 502(b)(3): Claim is for property tax exceeding the value of the estate's interest in the property.
§ 502(b)(4): Claim for services of an insider/attorney exceeds the reasonable value of the services.
§ 502(b)(6): Cap on landlord damages claims (lesser of one year's rent or 15% of the remaining lease term, capped at three years).
§ 502(b)(7): Cap on employment contract damages (one year's compensation).
§ 502(b)(9): Claim is filed late.

Common Objection Grounds

In addition to the statutory categories above, certain factual grounds appear frequently in consumer cases:

Insufficient documentation. FRBP 3001(c) requires that a claim based on a writing have the writing attached. For credit-card and consumer-debt claims under FRBP 3001(c)(3), specific itemization is required (account number, account opening date, last transaction date, last payment date, charge-off date, balance breakdown). Missing required items can support objection.
Statute of limitations. A claim that would be time-barred under state law if asserted in a non-bankruptcy collection action is unenforceable under § 502(b)(1). Old debts purchased by debt-buyers are particularly susceptible.
Standing/chain of title. Where a claim has been transferred multiple times among debt buyers, gaps in the assignment chain can defeat the current holder's standing to enforce.
Duplicate claims. The same debt filed by both the original creditor and a subsequent purchaser, or by the original creditor under multiple account numbers.
Wrong amount. The claim amount differs from the debtor's records, includes disputed late fees or post-petition interest, or includes amounts already paid.

Practical step. Compare the proof of claim to your own records (the original contract, account statements, any settlement letters). Discrepancies are objection grounds. A creditor that filed sloppily often cannot cure on objection, and the claim gets reduced or disallowed.

Procedure: FRBP 3007

Federal Rule of Bankruptcy Procedure 3007 governs the procedural mechanics:

The objection is in writing and is filed with the court
The objection includes a notice of hearing or, in courts using negative-notice procedure, a deadline for the claimant to respond
The objection is served on the claimant at the address on the proof of claim
If the claimant does not respond by the deadline, the court can enter an order on the objection without hearing
If the claimant responds and contests, the court holds an evidentiary hearing

FRBP 3007(a) allows joining objections to multiple claims of the same creditor in a single motion. Some districts have local rules adding requirements (mandatory exhibits, specific service procedures, time-frames).

Standing to Object

Both the trustee and the debtor have standing to object to claims. In Chapter 13, debtor-counsel typically takes the lead because the debtor's plan economics are affected by claim allowance. In Chapter 7 with assets, the trustee usually takes the lead for the same reason. Other parties in interest (other creditors, indenture trustees) can object in narrower circumstances.

Effect on Plan Economics in Chapter 13

Successful objections matter most in Chapter 13 because they directly affect what the debtor pays. Reducing a $10,000 unsecured claim to $5,000 in a 100% plan saves the debtor $5,000 over the plan term. Even in pro-rata plans, the reduction can mean larger distributions to remaining creditors or a shorter plan period.

Objections also affect the trustee's commission base in some districts, which is why standing trustees often actively pursue objections to dubious claims.

Late-Filed Claims

The bar date for filing claims is typically 70 days after the order for relief in Chapter 13 (FRBP 3002(c)) or 70 days after entry of the order for relief in Chapter 7. Government claims have an extended window of 180 days after the order for relief.

Claims filed after the bar date are subject to objection under § 502(b)(9) and FRBP 3002(c). Some narrow exceptions exist for excusable neglect under FRBP 9006(b)(1) but the standard is high. Late claims are routinely disallowed.

Withdrawing or Amending a Claim

A creditor whose claim faces a meritorious objection can withdraw the claim under FRBP 3006 (with court approval if action has been taken on the claim) or amend the claim to address the defect. Amendments adding new claims or substantively changing the basis of the claim may be treated as new claims and tested against the bar date.

Objections to Claim: § 502 and FRBP 3007

The Prima Facie Effect of a Filed Claim

Statutory Grounds Under § 502(b)

Common Objection Grounds

Procedure: FRBP 3007

Standing to Object

Effect on Plan Economics in Chapter 13

Late-Filed Claims

Withdrawing or Amending a Claim

Further Reading