--- title: Deadlines Matter – Failure to File a Proof of Claim Could Leave Your “Secured” Client Out in the Cold description: Courts in the Seventh Circuit have been busy pondering what happens where a secured lender fails or chooses not to file a POC in the Debtor’s bankruptcy case. image: https://blog.goosmannlaw.com/hubfs/47101613_m.jpg --- [![Goosman Lawfirm](https://blog.goosmannlaw.com/hs-fs/hubfs/Goosmannlaw%20October2017/images/Goosmann_Law_Firm_logo_4C-white.png?width=1250&name=Goosmann_Law_Firm_logo_4C-white.png "Goosman Lawfirm")](http://goosmannlaw.com/) - [COVID-19 Toolbox](https://goosmannlaw.com/covid-19-resource-toolbox/) - Our Team - [Attorneys](https://goosmannlaw.com/attorneys/) - [Non-Attorney Staff](https://http://goosmannlaw.com/non-attorney-staff/) - Practices & Industries - [Practices](https://goosmannlaw.com/practices/) - [Banking & Finance](https://goosmannlaw.com/banking-finance/) - [Bankruptcy, Restructuring & Workouts](https://goosmannlaw.com/bankruptcy-restructuring-workouts/) - [Business](https://goosmannlaw.com/business/) - [Divorce & Family Law](https://goosmannlaw.com/divorce-family-law/) - [Employment](https://goosmannlaw.com/employment-law/) - [Environmental, Health & Safety](https://goosmannlaw.com/health-safety/) - [Estate Planning](https://trustlawcounsel.com) - [Gestational Surrogacy & Adoption](https://goosmannlaw.com/gestational-surrogacy-adoption/) - [International Law](http://goosmannlaw.com/international-law/) - [Litigation / Trial Law](https://goosmannlaw.com/litigation-trial-law/) - [Local Counsel](https://http://goosmannlaw.com/local-counsel/) - [Mergers & Acquisitions](https://goosmannlaw.com/mergers-acquisitions/) - [Rapid Response](https://goosmannlaw.com/rapid-response/) - [Industries](https://goosmannlaw.com/industries/) - [Agribusiness & Cooperatives](https://goosmannlaw.com/agribusiness-cooperatives/) - [Construction](https://goosmannlaw.com/construction/) - [Cyber Law and Telecommunications](https://goosmannlaw.com/cyber-law/) - [Education](https://goosmannlaw.com/education/) - [Health Care](https://goosmannlaw.com/health-care/) - [Manufacturing](https://goosmannlaw.com/manufacturing-law/) - [Multifamily Housing](https://goosmannlaw.com/multifamily-housing-law/) - [Non-Profit & Tax Exempt Organizations](https://goosmannlaw.com/non-profit-law/) - [Real Estate](https://goosmannlaw.com/real-estate/) - [Transportation](https://goosmannlaw.com/transportation/) - [Tribal](https://goosmannlaw.com/tribal/) - Our Firm - [Firm News](https://blog.goosmannlaw.com/firm-news) - Careers - [Attorneys](https://goosmannlaw.com/careers/attorneys/) - [Administration](https://goosmannlaw.com/careers/administration/) - [Internships](https://goosmannlaw.com/careers/internships/) - [Client Testimonials and Results](https://goosmannlaw.com/our-firm/client-testimonials-and-results/) - [Culture, Diversity, and Community](https://http://goosmannlaw.com/our-firm/culture-diversity-and-community/) - [Women-Owned Business](https://goosmannlaw.com/our-firm/women-owned-business/) - [Associations & Memberships](https://goosmannlaw.com/associations-memberships/) - [Firm History](https://goosmannlaw.com/firm-history/) - Blogs - [CEO Law Review](https://blog.goosmannlaw.com/ceo-on-your-side) - [Construction Lawyer](https://blog.goosmannlaw.com/construction-lawyer-on-your-side) - [Cyber Lawyer](https://blog.goosmannlaw.com/cyber-lawyer-on-your-side) - [Deal Maker](https://blog.goosmannlaw.com/deal-maker-on-your-side) - [Divorce Docket](https://blog.goosmannlaw.com/divorce-lawyer-on-your-side) - [Food for Thought](https://blog.goosmannlaw.com/agricultural-lawyer-on-your-side) - [HR Legal Insider](https://blog.goosmannlaw.com/human-resources-on-your-side) - [Law Doc](https://blog.goosmannlaw.com/health-lawyer-on-your-side) - [Paralegal Review](https://blog.goosmannlaw.com/paralegal-review/) - [Real Estate Lawyer](https://blog.goosmannlaw.com/real-estate-lawyer-on-your-side) - [Risky Business](https://blog.goosmannlaw.com/risk-manager-on-your-side) - [The Banker’s Suit](https://blog.goosmannlaw.com/banking-lawyer-on-you-side) - [Trial Law Review](https://blog.goosmannlaw.com/trial-lawyer-on-you-side) - [Trust Law Counsel](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side) - Resources - [COVID-19 Resource Toolbox](https://goosmannlaw.com/covid-19-resource-toolbox/) - [Podcast](http://podcast.goosmannlaw.com/) - [Videos](https://goosmannlaw.com/videos/) - [FREE eBooks & Tools](https://goosmannlaw.com/free-ebooks-tools/) - Contact Us - [Office Locations](https://goosmannlaw.com/locations/) - [Sioux City Law Firm](https://goosmannlaw.com/locations/sioux-city-law-firm/) - [Sioux Falls Law Firm](https://goosmannlaw.com/locations/sioux-falls-law-firm/) - [Omaha Law Firm](https://goosmannlaw.com/locations/omaha-law-firm/) - [Spirit Lake & Spencer Law Firms](https://goosmannlaw.com/locations/spirit-lake-and-spencer-law-firm/) - [Real Estate Closings Office](https://goosmannlaw.com/locations/real-estate-closing-office/) - [Submit a Testimonial](https://goosmannlaw.com/submit-a-testimonial/) - [Sign Up for Our Newsletter](https://goosmannlaw.com/sign-up-for-our-newsletter/) - [Pay Online](https://goosmannlaw.com/pay-online-3/) - [  (855) 843-4531](tel:855-843-4531) ![](https://blog.goosmannlaw.com/hubfs/Blog_Images/Lockbox%20Lawyer/close-button.png) [tel:855-THE-GLF1](tel:855-THE-GLF1) [Banking](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/banking) # [Deadlines Matter – Failure to File a Proof of Claim Could Leave Your “Secured” Client Out in the Cold](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/deadlines-matter-failure-to-file-a-proof-of-claim-could-leave-your-secured-client-out-in-the-cold) By [Elizabeth M. Lally](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/author/elizabeth-m-lally)   |  9, February 2017 [READ NOW](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/deadlines-matter-failure-to-file-a-proof-of-claim-could-leave-your-secured-client-out-in-the-cold) [Read Post](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/deadlines-matter-failure-to-file-a-proof-of-claim-could-leave-your-secured-client-out-in-the-cold#article) [![](https://blog.goosmannlaw.com/hs-fs/hubfs/Elizabeth%20M%20Lally%20Headshot_Close-2.jpg?width=60&name=Elizabeth%20M%20Lally%20Headshot_Close-2.jpg)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/author/elizabeth-m-lally) [Elizabeth M. Lally](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/author/elizabeth-m-lally)  Tags: [Banking](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/banking) ![Sioux_City_Lawyer](https://blog.goosmannlaw.com/hs-fs/hubfs/47101613_m.jpg?width=499&name=47101613_m.jpg "Sioux_City_Lawyer") Courts in the Seventh Circuit have been busy lately pondering what happens where a secured lender fails or chooses not to file a [Proof of Claim (POC)](https://en.wikipedia.org/wiki/Claim_in_bankruptcy) in the Debtor’s bankruptcy case. In *In re Jones*, the secured lender Grant County State Bank made a mortgage loan to the eventual debtors, James and Amy Jones. *In re Jones*, 2016 WL 4691043, *Decision on Motion for Relief from Stay* (Bankr. N.D. Ind. 2016) (Grant).  Grant County State Bank then failed to file a POC in the Jones’s bankruptcy case. The Bankruptcy Court for the Northern District of Indiana ruled that the Bank *could not recover any payments* *during the course of the Debtors’ case*, *because the bank failed to file a POC*. Rather, the Bank had to wait until the conclusion of the sixty (60) month plan before it could pursue its rights against the Jones’s home.  *In re Pajian*, 785 F.3d 1161 (7th Cir. 2015),Edward Pajian filed for bankruptcy, Lisle Savings Bank, one of Pajian's creditors, filed a proof of claim in the bankruptcy court. This is standard procedure, but there was a hiccup: the Bank missed the bankruptcy court's deadline for filing such proofs by several months. The court had set the deadline in accordance with Federal Rule of Bankruptcy Procedure 3002(c), which requires creditors to file proofs of claim within 90 days of the date set for the meeting of the debtor's creditors. The Bank excused its tardiness with the argument that Rule 3002(c) applies only to unsecured creditors; as a secured creditor, it asserted, it was entitled to file a proof of claim at any time, at least until plan confirmation. The bankruptcy court agreed with the Bank and overruled Pajian's objection to the Bank's claim. The Seventh Circuit Court of Appeals then reversed the bankruptcy court and held that a secured creditor must file its proof of claim by the 90-day deadline specified by Rule 3002(c). \*Elizabeth’s practice includes all facets of restructuring, insolvency and bankruptcy representation, including secured lenders, unsecured creditors, Bankruptcy Panel Trustees, and creditors’ committees. She also assists clients with the purchase of assets from insolvent entities, both inside and outside of bankruptcy. [![CONTACT US](https://no-cache.hubspot.com/cta/default/489404/ec70fe7d-ad02-40c5-93ba-4800375ab6e9.png)](https://cta-redirect.hubspot.com/cta/redirect/489404/ec70fe7d-ad02-40c5-93ba-4800375ab6e9) ### Select Different CTA for each Post from Blog Editor [![New Call-to-action](https://no-cache.hubspot.com/cta/default/489404/a8cefc17-3b9d-4de0-89cd-e60a64752422.png)](https://cta-redirect.hubspot.com/cta/redirect/489404/a8cefc17-3b9d-4de0-89cd-e60a64752422) ### Subscribe Our Blog Thanks for submission!! - Recent - Popular ### Posts by Topic - [Banking (34)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/banking) - [Bankruptcy (26)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/bankruptcy) - [COVID-19 (15)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/covid-19) - [Banking Litigation (12)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/banking-litigation) - [Chapter 11 Bankruptcy (12)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/chapter-11-bankruptcy) - [Subchapter V (9)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/subchapter-v) - [Bankruptcy Court (6)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/bankruptcy-court) - [Student Loan Debt (3)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/student-loan-debt) - [Foreclosure (2)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/foreclosure) - [PPP Loans (2)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/ppp-loans) - [Small Business Owner (2)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/small-business-owner) - [small business (2)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/small-business) - [Agricultural News and Insights (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/agricultural-news-and-insights) - [BNPL (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/bnpl) - [Business Law (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/business-law) - [CARES Act (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/cares-act) - [Chapter 7 Bankruptcy (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/chapter-7-bankruptcy) - [Creditor (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/creditor) - [Cryptocurrency (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/cryptocurrency) - [Deal Gone Bad (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/deal-gone-bad) - [Farm Bankruptcies (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/farm-bankruptcies) - [Farm Forecast (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/farm-forecast) - [Forbearance (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/forbearance) - [Franchise (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/franchise) - [Intellectual Property (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/intellectual-property) - [Judgment (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/judgment) - [Lenders (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/lenders) - [Social Security Benefits (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/social-security-benefits) - [Unpaid Legal Bills (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/unpaid-legal-bills) - [commerical real estate (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/commerical-real-estate) - [evictions (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/evictions) - [liquidation (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/liquidation) - [omaha law firm (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/omaha-law-firm) - [online purchasing (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/online-purchasing) - [subchapter 5 bankruptcy (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/subchapter-5-bankruptcy) DISCLAIMER: The information in this blog post (“post”) is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. By visiting this website, blog, or post you understand that there is no attorney client relationship between you and the Goosmann Law Firm attorneys and website publisher. No information contained in this post should be construed as legal advice from Goosmann Law Firm, PLC, or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction. #### Let Us Know What You Thought about this Post. Put your Comment Below. [Previous Post](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/business-bankruptcy-filings-on-the-upswing) ##### [Business Bankruptcy Filings on the Upswing](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/business-bankruptcy-filings-on-the-upswing) [Next Post](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/3-things-to-do-when-your-deal-is-threatening-to-go-bad) ##### [3 Things To Do When Your Deal Is Threatening To Go “Bad”](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/3-things-to-do-when-your-deal-is-threatening-to-go-bad) ### Contact Info **Sioux City Location** P. 712-226-4000 F. (712) 224-4517 **Sioux Falls Location** P. (605) 371-2000 F. (605) 275-2039 **Omaha Location** P. (402) 280-7648 F. (402) 505-3967 --- [Disclaimer](http://goosmannlaw.com/list-all-blogs/disclaimer/) | [Privacy Policy](http://goosmannlaw.com/privacy-policy/) ### Locations **Sioux City Location** 410 5th Street Sioux City, IA 51101 **Sioux Falls Location** 5010 S. Minnesota Avenue, Suite 100 Sioux Falls, SD 57108 **Omaha Location** Advent Building 17838 Burke Street, Suite 250 Omaha, NE 68118 ![Goosmann](https://blog.goosmannlaw.com/hs-fs/hubfs/Blog_Images/Lockbox%20Lawyer/goosmann-white.png?width=250&name=goosmann-white.png "Goosmann") Goosmann Law Firm is a FULL SERVICE LAW FIRM with locations in Sioux City, Iowa, Sioux Falls, South Dakota, and Omaha, Nebraska. Goosmann Law attorneys are licensed to practice in Iowa, Nebraska, South Dakota, and North Dakota. Their attorney team's practices and industries include but are not limited to Agribusiness and Cooperatives, Banking and Finance, Bankruptcy, Restructuring and Workouts, Business, Construction, Cyber Law and Telecommunications, Divorce and Family Law, Education, Employment, Environmental Health and Safety, Gestational Surrogacy and Adoption, Health Care, Litigation and Trial Law, Manufacturing, Mergers and Acquisitions, Municipal, Nonprofit and Tax Exempt Organizations, Real Estate, and Transportation, Tribal, Wills, Trusts, Estate Planning, and Probate Law. Goosmann © Copyright 2017