What Is a Proof of Claim?
A Proof of Claim is a standardized form used in bankruptcy cases, allowing creditors to declare the amount of money they believe they are owed. Filing this form is essential for creditors who want to receive payment through the bankruptcy process.
The Proof of Claim:
- Identifies the creditor.
- Lists the debt amount.
- States the basis for the claim.
- Provides supporting documentation.
This form is available on the U.S. Courts website.
Who Should File a Proof of Claim?
A Proof of Claim can be filed by any creditor in a bankruptcy case, depending on the chapter type:
In Chapter 7 Cases:
- No-Asset Cases:
- Creditors are instructed not to file a Proof of Claim if the trustee determines there are no assets to distribute.
- If assets are found later, the court will notify creditors to file a claim.
- Asset Cases:
- Creditors must file a Proof of Claim within the deadline if they want a portion of the available funds.
- Creditors who fail to file won’t receive any distribution from the bankruptcy estate.
In Chapter 13 Cases:
- Creditors may file a Proof of Claim as soon as they receive notice of the bankruptcy.
- Deadlines to File:
- Non-government creditors: 90 days after the first 341 Meeting of Creditors.
- Government creditors: 180 days after the first 341 Meeting.
- Filing is mandatory for all creditors, including secured creditors, to receive distributions under the repayment plan.
What Happens If a Proof of Claim Contains Errors?
If a creditor submits a Proof of Claim that contains incorrect information or lacks necessary documentation, it can be challenged:
- In Chapter 7 Cases:
- The trustee can object to claims with errors, such as incorrect amounts, improper categorization, or missing documents.
- In Chapter 13 Cases:
- Any party in interest (debtor, trustee, or other creditors) can object to a claim.
- The objection process includes filing a motion with the court and scheduling a hearing to resolve the issue.
What Does a Proof of Claim Include?
To be valid, a Proof of Claim should contain:
- Creditor Details: Name, address, and contact information.
- Debt Amount: The total amount owed as of the bankruptcy filing date.
- Claim Basis: The reason the debt exists (e.g., credit card debt, medical bills, secured loans).
- Security Information (if applicable): For secured debts, details about the collateral (e.g., car, home).
- Supporting Documents: Copies of loan agreements, contracts, account statements, or any other relevant documentation.
Why It Matters for Debtors
For debtors, understanding the Proof of Claim process is vital because:
- It helps ensure creditors accurately report their claims.
- It provides an opportunity to dispute errors or unjustified claims.
- In Chapter 13 cases, the accuracy of claims can directly affect the repayment plan.
How We Can Help
If you live in the Kansas City area and are considering bankruptcy, we can guide you through the process from start to finish. Whether you’re filing for Chapter 7 or Chapter 13, our experienced bankruptcy attorneys will:
- Help you understand creditor claims.
- Address any inaccuracies in Proofs of Claim.
- Ensure your bankruptcy case is handled effectively and efficiently.
Contact Us Today
Navigating bankruptcy can be complex, but you don’t have to face it alone. Let us help you secure your fresh financial start. Contact us today to schedule a bankruptcy consultation with one of our knowledgeable Kansas City bankruptcy attorneys.
