Creditor’s Rights Lawyers
If you are owed money by a person who has filed for bankruptcy, you must file a proof of claim in order to get paid during the bankruptcy. The law requires both secured and unsecured creditors to file a proof of claim. The proof of claim contains your name, information, nature of the debt, and amount of the debt. The proof of claim also asks the creditor to include any additional documentation supporting the amount of the debt owed. The supporting documents could be loan agreements, installment contracts, or payment history. The proof must be filed in the court where the debtor filed for bankruptcy in the time allowed by law. The notice of bankruptcy filing will notify creditors of the bankruptcy and the deadline to file their proof of claim. If you have questions about filing a proof of claim, we recommend consulting with creditor’s rights lawyers for assistance when drafting a proof of claim form.
In bankruptcy, some debts are considered a “priority” and will be paid before other claims. Priority claims include, but are not limited to, income tax and child support. The proofs of claims allow the trustee to review all of the debts owed and prioritize based on bankruptcy law. Once the proof of claim is filed the bankruptcy trustee will review all of the claims and determine how much to pay each of the creditors.
In Chapter 7 bankruptcies the debtor may have no assets and creditors may receive notice that no proof of claim deadline has been set. However, if the trustee later determines the debtor has assets an updated notice will be sent to all creditors. It is extremely important as a creditor to watch for such notices so you do not lose the opportunity to file a proof of claim.
A sample proof of claim form can be found here. If you have questions about whether you or your company need to file a proof of claim, please contact the professionals at Allison L. Harrison Law, LLC by phone, (614) 440-1395 or via email at email@example.com. Schedule a consultation with experienced creditor’s rights lawyers in Columbus today.