Upon further review: Trustee's disallowance of a previously allowed claim

Juin 2012 Auteurs: Randal S. Van de Mosselaer, Justin D. Doll

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What options does a trustee in bankruptcy have when it initially allows a proof of claim only to discover that the claim ought to have been disallowed? Can a trustee simply disallow the previously allowed claim, or is something more required? The recent case of First Capital Management (Re)1 considered the circumstances in which a proposal trustee would be entitled to revise a notice of disallowance that had the effect disallowing part of a proof of claim and allowing another part of the same proof of claim pursuant to s. 135 of the Bankruptcy and Insolvency Act.2

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