Opinion
Case No. 00-12182, Chapter 13.
January 23, 2001
ORDER DENYING DEBTOR'S OBJECTION TO CLAIM
This matter is before the Court on the Debtor's objection to claim (Docs. 29, 37) and creditor Cabinet Supplier of Ohio, Inc.'s response (Doc. 30, 38).
This issue before the Court is the effect on Cabinet Supplier's claim in this chapter 13 bankruptcy case of a non-debtor co-maker's postpetition payment to Cabinet Supplier on the underlying debt.
The facts are not in dispute. In 1998 and 1999, the Debtor and a third party, apparently doing business as Precision Millworks, incurred a debt to Cabinet Supplier in the amount of $17,639.38. On April 19, 2000, the Debtor filed his chapter 13 petition. The Debtor listed a disputed debt to Cabinet Supplier in the amount of $17,639.38. The Debtor's proposed "pot" plan of approximately 25% has been confirmed. On May 18, 2000, Cabinet Supplier filed its proof of claim for $17,639.38 plus interest. On October 4, 2000, a non-debtor co-maker paid $5,000 to Cabinet Supplier on the debt in consideration of a "release in full on the liability". See Doc. 37, p. 1.
The Debtor contends that Cabinet Supplier's claim should be reduced by the $5,000 payment and, therefore, that the Debtor should pay Cabinet Supplier a percentage calculated on a $12,639.38 claim. We disagree.
Pursuant to 11 U.S.C. § 502(b), the amount of a claim is determined as of the date of the filing of the petition. On the petition filing date, the $5,000 payment had not yet been made. Accordingly, we find that the Debtor's obligation to Cabinet Supplier should be calculated based upon the $17,639.38 claim amount.
Citing 11 U.S.C. § 502(b)(1), the Debtor correctly states that a claim is allowed except to the extent that such claim is unenforceable against a debtor. However, this provision would not come into play in the present case unless the payments from the Debtor to Cabinet Supplier inside the plan were to exceed $12,639.38. This is because Cabinet Supplier is entitled to receive no more than the total amount of $17,639.38 (plus allowed interest) from all the obligors on the subject debt.
This does not appear to the case. However, should it appear to the Chapter 13 Trustee that the payments to Cabinet Supplier from the Debtor will exceed $12,639.38, she shall take whatever action she deems appropriate to limit the distribution to Cabinet Supplier.
We note that Cabinet Supplier's reliance on 11 U.S.C. § 509, entitled "claims by codebtors" is misplaced because the non-debtor co-maker has not filed a claim.
Accordingly, the Debtor's objection to claim is hereby DENIED.
IT IS SO ORDERED.