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BankruptcyThe Bankruptcy StrategistFeatures

Third Circuit: A Claim’s Enforceability Is Evaluated As of the Petition Date, Not When Objection Filed

By Lawrence J. Kotler and Geoffrey A. Heaton
June 30, 2025

In the case of In re Promise Healthcare Group, 130 F.4th 56 (3rd Cir. 2025), the U.S. Court of Appeals for the Third Circuit, addressing an unresolved question within the circuit, recently held that a claim’s enforceability is evaluated as of the petition date, not at the time an objection to the claim is filed. In its opinion, the court also determined that once a proof of claim is filed, a claimant has no duty to file an action against the debtor before the applicable statute of limitations expires in order to preserve its timely filed bankruptcy claim.

Background


On Nov. 5, 2018, Promise Healthcare Group LLC and related entities (collectively, the debtors), which operated hospital and nursing facilities across the country, filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

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