Chapter 7 Trustee has standing to respond to Claim Objections - New Mexico BK Court

The Court sua sponte raised the issue as to whether a Trustee has standing to respond to a claim objection.  The Court determined that neither the Code nor the Rules give explicit standing to a trustee to step in and defend a claim upon the claimant's default.  However, the Court noted that two cases indirectly addressed the issue and appeared to permit the trustee to proceed.  The Court in its case determined that the Trustee as a direct pecuniary interest in the outcome of the claim objection combined with the Congressional intent that case trustees are to be directly involved in claims administration.  Accordingly, the Court found that the Trustee had standing.

In re Quintero

United States Bankruptcy Court for the District of New Mexico

June 19, 2014, Decided

No. 7-12-10591 TA