In bankruptcy proceedings, after reporting the claim, the trustee prepares a list of claims and then submits it to the judge-commissioner.
Within two weeks from the date of making the announcement, the creditor may submit an objection to the judge-commissioner regarding:
1) recognition of receivables – in the case of a creditor included in the list of receivables;
2) refusal to acknowledge the receivable – in the case of a creditor who has been refused recognition of the reported receivable.
Moreover, the bankrupt has the right to object within the same period, unless the list of receivables is inconsistent with his applications or declarations. If the bankrupt person did not submit declarations even though he was summoned to do so, he may raise an objection only if he proves that he did not submit declarations for reasons beyond his control.
The objection should meet the formal requirements of a procedural document and should also indicate the disputed claim and contain a motion to acknowledge or refuse to acknowledge the claim, together with a justification and evidence to support it. The judge-commissioner rejects an objection submitted after the expiry of the deadline or which is inadmissible for other reasons, as well as an objection whose deficiencies have not been remedied by the party, or an objection for which the party has not paid the due fee within the prescribed period.
It should be emphasized that the objection must be filed separately for each disputed claim on the list. It happens that objections are filed by one entity against several items on the list, i.e. against several different creditors. From a procedural point of view, this is unacceptable and will require filling in the gaps. A fee must be charged for each objection (regarding each claim) and copies of the letter must be delivered.
The judge-commissioner, deputy judge-commissioner or designated judge shall hear the objection at a closed session within two months of its submission. If the judge-commissioner, deputy judge-commissioner or designated judge finds it necessary to schedule a hearing, he or she notifies the trustee, the bankrupt and the creditor who filed the objection and the creditor whose claim the objection concerns. The failure of these persons to appear, even if justified, does not suspend the issuance of the decision.
The judge-commissioner, deputy judge-commissioner or designated judge may refrain from taking evidence from a witness’s testimony or an expert’s opinion if the witness gave testimony or the expert prepared an opinion in other proceedings pending before a court, arbitration court or administrative body. In such a case, the evidence consists of documents containing the content of a witness’s testimony or an expert’s opinion.
The bankrupt, the trustee and each of the creditors may appeal against the decision on the objection.
Repealing the decision on the objection and remitting the case for reconsideration is possible only if it is necessary to conduct the entire evidentiary proceedings or if the proceedings were invalid during the examination of the objection, the effects of which could not be removed in the complaint proceedings.
