A “proof of claim” is an official form filed by creditors in
a bankruptcy case that helps the trustee determine what debts are owed and how
much to pay each creditor if there are assets available for liquidation or a
payment plan.
Filing a proof of claim does not guarantee that you will be
paid! For example, in a chapter 7
bankruptcy case, creditors are paid only if there are non-exempt assets
available for the trustee to liquidate.
In many cases there are no assets.
In cases with assets, their liquidation usually does not yield enough to
pay creditors in full, but creditors may receive a partial payment.
Typically, when a bankruptcy case is filed, the trustee will
provide notice to creditors that the bankruptcy case has been filed, and the
notice will specify the date (the “bar date”) by which a proof of claim must be
filed. An example of this notice can be
found at the following link: http://www.uscourts.gov/uscourts/RulesAndPolicies/rules/BK_Forms_Current/B_009I.pdf. Failure to file a proof of claim on time may
“bar” a creditor's claim.
In the proof of claim, the creditor must set forth specific
information such as its correct name and address, the amount of the debt as of
the date on which the bankruptcy case was filed, and whether the claim is
secured or unsecured. Creditors should
also attach copies of the documents that evidence the claim such as a
promissory note, security agreement, UCC-1 financing statement, guaranty, or
deed of trust.
A form proof of claim may be found at: http://www.uscourts.gov/uscourts/RulesAndPolicies/rules/BK_Forms_Current/B_010.pdf,
however, some local courts have their own versions of this form.
Some larger companies with collections departments and
bankruptcy specialists will file their own proof of claim. However, if you are unfamiliar with the
bankruptcy process and deadlines, the best practice is to hire an attorney to
assist you in navigating through the bankruptcy case.
Article
by Sarah F. Berry, Attorney
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