Debra Ann Bozman and Cornelius Emmanul Bozman

UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF OHIO
EASTERN DIVISION
In re: 	: 	Case No. 05-59775
:
Debra Ann Bozman and 	: 	Chapter 7
Cornelius Emmanuel Bozman, Sr. 	:
Debtors 	: 	Judge Preston
ORDER OVERRULING OBJECTION TO CLAIMS
This cause came on for hearing April 18, 2006 upon the Objection to Claims by
creditor Universal 1 Credit Union (Doc. 16), filed January 16, 2006, and the Trustee’s
Response thereto (Doc. 18), filed January 19, 2006. Present at the hearing were attorney
Amelia A. Bower, representing the Universal 1 Credit Union (hereafter “Universal 1”), and
attorney Kenneth M. Richards, representing the Chapter 7 Trustee. 	The Court took the
matter under advisement, and after consideration of the issues raised, is now prepared to
render its decision.
On June 6, 2005 Debtors filed a voluntary petition for relief under Chapter 7 of the
This document has been electronically entered in the records of the United
States Bankruptcy Court for the Southern District of Ohio.
IT IS SO ORDERED.
Dated: June 26, 2006
____________________________________________________________
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Bankruptcy Code. On their Schedule F, Debtors listed AT&T Card–Universal Citi, holder of
a $13,000 claim, and Discover Financial Services, holder of a $15,000 claim. Both claims
are for credit card debt, and neither is designated as contingent, unliquidated, or disputed.
Discover Bank filed a proof of claim October 11, 2005, amended February 1, 2006, showing
its claim of $14,678.09. Citibank/CHOICE (hereafter “Citibank”) filed a proof of claim
December 5, 2005, for $12,105.44. Each creditor attached to its proof of claim a single page
statement summary, showing basic account information such as debtors’ names, account
number, and account balance. Universal 1, an unsecured creditor, objects to both claims on
the grounds that the proofs of claim lack sufficient documentation.
The Chapter 7 Trustee argued at hearing that Universal 1 lacked standing to object to
the claims of other creditors. Section 502 of the Bankruptcy Code provides that “a claim or
interest, proof of which is filed under section 501 of this title, is deemed allowed, unless a
party in interest . . . objects.” 	11 U.S.C. § 502(a). 	The term “party in interest” is not
specifically defined in the Code, but the advisory committee note to Rule 3007 provides
some guidance. “While the debtor’s other creditors may make objections to the allowance of
a claim, the demands of orderly and expeditious administration have led to a recognition that
the right to object is generally exercised by the trustee. Pursuant to § 502(a) of the Code,
however, any party in interest may object to a claim.” F. R. Bankr. P. 3007, advisory
committee note (emphasis added). A party in interest includes those persons with pecuniary
interest in the outcome of the controversy. Morton v. Morton (In re Morton), 298 B.R. 301,
307 (B.A.P. 6th Cir. 2003). The disallowance of one unsecured creditor’s claim necessarily
leads to the increase in the amount available to the other unsecured creditors. An unsecured
creditor, then, is a party in interest within the meaning of § 502(a). 	Power Five, Inc. v.
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General Motors Corp. (In re Automotive Armature Co.), 219 B.R. 513, 516–17 (S.D. Ind.
1998); In re Wharry, 91 B.R. 31, 34 (Bankr. N.D. Ohio 1988). Therefore, the Court finds
that Universal 1 has standing to object to the claims of Debtors’ other creditors.
Universal 1 objects to Claim No. 2 of Discover Bank and Claim No. 3 of Citibank on
the grounds that neither proof of claim provides sufficient supporting documentation.
Section 502 provides that when an objection to claim has been made, the court shall
determine the amount of the claim and allow the claim unless one of the enumerated
exceptions applies. 	11 U.S.C. 502(b)(1)–(9). 	These enumerated exceptions, along with
subsections (d) and (e) to § 502, provide the exclusive bases upon which objections can be
made. In re Burkett, 329 B.R. 820, 826 (Bankr. S.D. Ohio 2005). “[N]either 11 U.S.C.
§ 502 nor any other section of the Bankruptcy Code authorizes the court to disallow a claim
based on a lack of supporting documentation.” Id. Though both Rule 3001(c) and Official
Form 10 instruct creditors to attach certain supporting documents to their proofs of claim,
failure to fully comply with this instruction does not alone form the basis for disallowing a
claim.
The court in Burkett also stated that, “for allowance purposes, the proof of claim need
only be sufficient to establish the validity, ownership and amount of that claim.” Id. at 829.
The single page summaries attached to Claims No. 2 and No. 3 each provide the name of the
creditor, the name of the Debtor, the account number, and the amount of the balance owing.
Additionally, the Debtors have included on their Schedule F amounts reasonably close to
those provided in the proofs of claim, which tends to corroborate their validity. See id. (“In
many instances, a claim verified by a debtor’s schedules may require no documentation
whatsoever.”) Taken together, the summaries and the Debtor’s schedules are sufficient to
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establish the validity of Claims No. 2 and No. 3.
“If there is no underlying factual dispute as to the validity, ownership or amount of a
claim, [there is] no basis for filing an objection for lack of documentation unless [the
objecting party] alleges a basis that would require reduction or disallowance under § 502.”
Id. 	Universal 1 has asserted only the technical defect regarding insufficient supporting
documentation. No evidence has been presented as to any substantive defects in the proofs
of claim. Therefore, Universal 1’s objection provides no basis for this Court to disallow the
claims. Accordingly, it is
ORDERED AND ADJUDGED that Universal 1 Credit Union’s Objection to Claims
(Doc 16), filed January 16, 2006, is OVERRULED.
IT IS SO ORDERED.
Copies to:
Cornelius E. Bozman, Sr.
Debra Ann Bozman
1196 E. 24th Ave
Columbus, OH 43211
Debtors
Karen E. Hamilton, Esq.
31 E. Whittier St.
Columbus, OH 43206-2026
Debtors’ Attorney
Kenneth M. Richards
Luper Neidenthal & Logan
50 West Broad Street, Suite 1200
Columbus, Ohio 43215
Case Attorney for Trustee
Office of U.S. Trustee
Discover Bank/Discover Financial Services
P.O. Box 8003
Hilliard, OH 43026
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Citibank/Choice Exception Payment Processing
P.O. Box 6305
The Lakes, NV 88901-6305
Amelia A. Bower
Plunkett & Cooney
300 East Broad Street, Suite 590
Columbus, Ohio 43215
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