First City Beaumont v. Durkay (In Re Ford)

EMILIO M. GARZA, Circuit Judge:

This case began as a proof of claim filed in February 1989 by First City National Bank of Beaumont (“the Bank”) in the Chapter 7 bankruptcy proceeding of Sam E. Ford and Marcia Ford. The trustee for the Fords’ estate objected to the Bank’s claim on the grounds that it is a “contingent claim” and that, pursuant to section 502(c)(1) of Title 11, the Fords’ estate is therefore liable only for an estimated portion of the Bank’s claim. The bankruptcy court agreed and concluded that the Bank’s claim must be estimated pursuant to section 502(c)(1). The Bank appealed to…