McDonnell Property Analytics (“MPA”) provides bankruptcy attorneys who represent debtors that have filed for protection pursuant to Chapters 5, 7, 11, 12, and 13 with cutting edge analytics they can take to court.
Our Proof of Claim Analysis is specifically designed to assist bankruptcy attorneys challenge a creditor’s mortgage proof of claim in both residential and complex commercial transactions. In our experience, creditors’ mortgage proofs of claim are often non-compliant with the Bankruptcy Rules; are inaccurate; and are not supported by admissible documentary evidence.
A proof of claim is a written statement setting out a creditor's claim and asserting its right to receive a distribution from the bankruptcy estate. It must “conform substantially” to Official Bankruptcy Form B410, or in the case of a Mortgage Proof of Claim Attachment to Official Bankruptcy Form B410A. The purpose of a proof of claim is to give notice of the claim to the court, the debtor, the trustee, and other creditors.
A properly prepared proof of claim is prima facie evidence of the validity and amount of the claim (Fed. R. Bankr. P. 3001(f)) and is deemed allowed, unless a party in interest (such as the debtor) objects pursuant to § 502(a), Bankruptcy Code. This means that any distribution of the debtor's assets made on account of a claim is based on the filed proof of claim if it is not challenged (or survives a challenge).
The filing of an objection to a mortgage proof of claim must be timely made and, ideally, it will be filed prior to the Bankruptcy Court’s confirmation of the debtor’s plan of reorganization.
MPA’s Proof of Claim Analysis begins with our Financial Forensics Examination which allows us to analyze the entire transaction history up to the date when the bankruptcy was filed. We then analyze whether the proof of claim submitted by the creditor is accurate or inflated due to the servicer’s failure to properly apply the debtor’s payments according to the terms of the note; to manage the escrow account appropriately; or because it assessed improper fees and costs.
Our Proof of Claim Analysis ensures the accuracy of the arrearages that should be incorporated into the plan of reorganization. It also establishes a baseline against which to measure future violations of the automatic stay; the imposition of unapproved fees and costs; improper motions for relief from the automatic stay, etc.
In addition to ensuring the accuracy of the debtor’s mortgage loan account balances, our Proof of Claim Analysis may reveal hidden claims that should be preserved on the debtor’s asset schedule such as for:
Bankruptcy attorneys who specialize in the prosecution of consumer protection statutes as noted above can recover actual damages, statutory damages, punitive damages (FCRA), and legal fees. MPA frequently provides expert services to bankruptcy attorneys who litigate claims in adversary proceedings.
CASE STUDY – Affidavit in Support of Debtor’s Opposition to Creditor’s Proof of Claim
In October 2021, a Massachusetts LLC, engaged McDonnell Property Analytics to conduct a Proof of Claim Analysis and to submit an Expert Affidavit in Support of Debtor’s Opposition to Creditor’s Proof of Claim. Our expert, Marie McDonnell, performed a Financial Forensics Examination and authored the Expert Affidavit. Her findings are summarized below:
After undertaking an intensive examination of the subject transaction; reviewing the Mortgage Loan origination file including the HUD-1 Settlement Statement, Loan Agreement, Promissory Note, Mortgage, Guaranty, etc.; analyzing the Servicer’s partial transaction history, monthly statements, payoff quotes, etc.; reviewing the Debtor’s bankruptcy filings, Court Orders, and the commercial Creditor’s Proof of Claim (#3.1), I find as follows:
 See Official Form B410A at: https://www.uscourts.gov/sites/default/files/form_b410a_0.pdf.