Opinion ID: 771425
Heading Depth: 2
Heading Rank: 3

Heading: Did East Bay timely file a proof of claim?

Text: 29 East Bay filed a proof of claim for its unsecured debt on February 28, 1997, after the bankruptcy court granted partial summary judgment in favor of Prestige, finding that East Bay had waived its security interest. 6 The bankruptcy court and the district court found that this claim was timely under Bankr. R. 3002(c)(3) and 3003(c)(3). See Prestige II, 223 B.R. at 208. 30 Rule 3003(c)(3) requires the bankruptcy court to fix the time within which a proof of claim may be filed. Notwithstanding the expiration of such time, however, a proof of claim may be filed under the conditions stated in, inter alia, Rule 3002(c)(3), which provides in part: 31 An unsecured claim which arises in favor of an entity or becomes allowable as a result of a judgment may be filed within 30 days after the judgment becomes final if the judgment is for the recovery of money or property from that entity or denies or avoids the entity's interest in property. 32 Bankr. R. 3002(c)(3). 7 As the district court stated, under Rule 3002(c)(3) a previously secured creditor who did not file a secured claim may file an unsecured claim within 30 days after a judgment avoiding the security interest becomes final. East Bay's security interest was deemed waived in the bankruptcy court's opinion filed January 29, 1997. See Prestige I, 205 B.R. at 436. The judgment did not become final until the appeal was disposed of by this court on January 11, 1999. See Prestige III, 164 F.3d 1214. East Bay's claim, filed on February 28, 1997, was therefore timely.