Court Opinion

ID: 9701996
Source: CourtListenerOpinion
Date Created: 2023-08-25 22:48:08.729477+00
Date Added: 2024-06-11T15:10:17.793799
License: Public Domain

JONES, Bankruptcy Judge,
concurring.
Although I agree with the majority’s disposition of the present case, I wish to express my concern regarding due process requirements in cases such as the one at bar. The Due Process Clause of the fifth amendment states that no person shall “be deprived of life, liberty, or property without due process of law.” U.S. Const, amend. V. Essentially, “due process of law,” in the procedural sense, means notice and an opportunity to be heard. See Anderson Nat’l. Bank v. Luckett, 321 U.S. 233, 246, 64 S.Ct. 599, 606, 88 L.Ed. 692 (1944). “Notice” must be “reasonably calculated, under all the circumstances, to apprise interested parties of the pendency of the action and afford them an opportunity to present their objections.” Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306, 314, 70 S.Ct. 652, 657, 94 L.Ed. 865 (1950) (citations omitted).
The Bankruptcy Rules establish a bar date before which complaints to determine the dischargeability of debts must be filed. Bankruptcy Rule 4007(c). Debts for which no complaint has been timely filed are discharged. 11 U.S.C. section 523(c). Generally, a discharge prevents the creditor from ever recovering or attempting to recover discharged debts. 11 U.S.C. section 524. Due process requires that a creditor be furnished notice of the bar date, In re American Properties, Inc., 30 B.R. 247, 250-51 (Bankr.D.Kan.1983), and the Bankruptcy Rules provide for such notice. Rules 4007(c) and 2002(a) require the court to give notice by mail to all creditors 30 days prior to the bar date. When such notice is given, the dictates of due process are satisfied as such notice is reasonably calculated under the circumstances to apprise the creditor of the need to act promptly. See Mullane, 339 U.S. at 314, 70 S.Ct. at 657. When such notice is not given, the requirements of due process are not satisfied. See American Properties, 30 B.R. at 251. Merely showing that the creditor or creditor’s counsel was aware of the penden-cy of the bankruptcy proceeding is not sufficient. See Reliable Electric Co. v. Olson Constr. Co., 726 F.2d 620, 622 (10th Cir.1984) (creditor with knowledge or pend-ency of bankruptcy proceeding denied due process when not given notice of plan confirmation hearing).
Mail that is properly addressed, stamped and deposited into the mails is presumed to be received by the addressee. American Properties, 30 B.R. at 250. A certificate of mailing stating that notice of the bar dates was sent to all creditors or proof of a custom of mailing, raises the presumption that notices were properly mailed and therefore received. Id. The presumption can only be overcome by clear and convincing evidence that the mailing was not, in fact, accomplished. Evidence might include testimony of a clerk’s office employee that notice was not sent or proof that *499none of the listed creditors received notice. An allegation by the complaining creditor or its counsel that no notice was received, by itself, does not overcome the presumption.
The bankruptcy court customarily sends notice of the bar date to all creditors and the docket in this case indicates this was done. Thus, the presumption of mailing is raised here. Appellant has not overcome the presumption. Appellant’s counsel was not listed on the mailing matrix but Appellant was listed. Appellant merely claims that he did not receive the notice despite being correctly listed on the matrix. Appellant does not assert that the clerk’s office failed to mail the notice to appellant and there is no evidence that all or a substantial number of other creditors failed to receive notice. Under these circumstances, there is no basis for concluding that appellant was not sent notice of the bar date. Accordingly, I would vote to affirm.