Bankr. E.D.N.C.: In re Moses- Withdrawal of Proof of Claim Denied

Summary: Cashcall sought to withdraw its previously filed proof of claim and the Debtor objected, as such withdrawal would deprive the bankruptcy court of jurisdiction to hear the objection to claim and other matters brought in an Adversary Proceeding. Applying Bankruptcy Rule 3006, the bankruptcy court held that as the Debtor had filed an Adversary Proceeding, withdrawal of the Proof of Claim would prejudice the Debtor by eliminating any jurisdiction the bankruptcy court had, subjecting the Debtor’s counterclaims to litigation in state court and arbitration. See In re Frank, 322 B.R. 745 (Bankr. M.D.N.C. 2005) For a copy of the opinion, please see: Moses- Withdrawal of Proof of Claim Denied.pdf