Issue link: https://mbozikis.ufcontent.com/i/1422521
85 5. Allowance of Claims or Interests Section 502 of the Bankruptcy Code provides the rules for determining whether a claim is allowed. It is important to determine whether a claim is allowed because the rights of a holder of a claim will hinge on whether the claim is allowed or not. In particular, only holders of allowed claims may receive distributions in Chapter 7 cases or under confirmed plans in Chapters 9, 11, 12, and 13 cases. Under Section 502, a claim will be deemed allowed by (i) the filing of a proof of claim if no party in interest objects to the claim, (ii) court approval if an objection to the claim is filed under Section 502(b), or (iii) court estimation under Section 502(c). If a party in interest objects to a proof of claim, the court, after notice and a hearing, will determine whether, and in what amount, the claim will be allowed. 11 U.S.C. ยง 502(b). However, Section 502 of the Bankruptcy Code provides that the following types of claims will not be allowed: (i) when, under any agreement or applicable law, the claim is unenforceable against the debtor or its property for a reason other than because it is contingent or unmatured; (ii) a claim for unmatured interest (i.e., postpetition interest); (iii) a property tax claim to the extent the claim exceeds the value of the property; (iv) a claim for services of an insider or attorney of the debtor to the extent it exceeds the reasonable value of the services; (v) a claim for a postpetition domestic support obligation, which is nondischargeable in bankruptcy and is paid