Do I Need to File a Proof of Claim?

Understanding Filing Procedures: Filing a Proof of Claim

If a person who has filed for bankruptcy owes you money, 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 debtor must file the proof in the court where they filed for bankruptcy within 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.

Navigating Prioritized Debts: The Importance of Priority Claims

In bankruptcy, the court prioritizes certain debts over other claims for payment. 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.

Staying Vigilant: Adapting to Chapter 7 Bankruptcies

In Chapter 7 bankruptcies, the debtor may not possess any assets, and the creditors may receive a notice stating that the deadline for submitting proof of claim has not been established by the court. 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.

Seeking Professional Guidance: Consultation with Creditor’s Rights Lawyers

You can find a sample proof of claim form 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..  Schedule a consultation with experienced creditor’s rights lawyers in Columbus today.

https://youtu.be/0CPfWEoaNxU