Adding to the apparent deluge of issues surrounding the Eleventh’s Circuit decision in Crawford v. LVNV Funding, LLC
, the Bankruptcy Court for the Northern District of Indiana has sanctioned two creditors for not being able to do math. More accurately, the Sekema
court awarded sanctions of $1000 for no-showing a show-cause hearing to explain why filing a time-barred claim did not violate Rule 9011. The underlying debts were subject to Indiana’s six-year statute of limitations. The debtors successfully objected to the claim on that basis, and the Court issued a Show Cause Order on its own initiative (“By filing that claim, it appears that [creditors] violated Rule 9011(b)(2) of the Federal Rules of Bankruptcy Procedure because the claim was not warranted by existing law or a non-frivolous argument for its extension and a reasonable pre-filing inquiry would have revealed that lack of merit. See In re Excello Press, Inc.
, 967 F.2d 1109, 1112-13 (7th Cir. 1992) (Rule 11 requires the filer to investigate any obvious affirmative defenses)”). The creditors failed to appear and the Sekema
court took the matter under submission.