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FRBP 3007 Objections to Claims (Judge Gargotta)

In re UTEX Communications Corp. (September 21, 2011)
Issue: Do Debtor’s set-off claims negate Creditor’s administrative expense claim?
Holding: Debtor’s offset claims do not negate the administrative expense claim. Under Bankruptcy Rule 7001, an objection to a claim is not the proper place to raise a claim for set-off. Instead, these claims can be included in an adversary proceeding under Bankruptcy Rule 3007(b).