It is helpful to understand basic terms associated with bankruptcy proceedings, such as proof of claim. A proof of claim is a written statement notifying the bankruptcy court, debtor, trustee, and other interested parties that a creditor wishes to receive a distribution from the bankruptcy estate. In most Chapter 7 and Chapter 13 cases with assets, all unsecured creditors must file a proof of claim to get paid.
The filing deadline is usually included with the first notice sent to creditors, informing them that a petition has been filed and a date set for the meeting of creditors. This notice also sets the deadline to file objections to the discharge. Extensions are not usually granted, but can be if a creditor shows extenuating circumstances or excusable neglect.
Forms are available for filing a formal proof of claim. The form requests basic information including type of claim, basis for claim, amount owed and supporting documentation.
Some courts will accept an informal proof of claim from a creditor if it:
▪ Is submitted in writing
▪ Includes a demand against the bankruptcy estate
▪ Demonstrates the intent to hold the estate liable
▪ Is filed with the bankruptcy court
▪ Is deemed fair under the circumstances of the case
The bankruptcy judge decides whether an informal proof of claim will be allowed. In no-asset Chapter 7 cases, a court may instruct creditors not to file because there will be no money to distribute. If assets become available later, the trustee must provide creditors with notice, after which creditors must file a proof of claim.
To learn more about bankruptcy proof of claim, or if you need assistance filing a proof of claim, contact Windtberg & Zdancewicz to schedule an initial consultation.
The attorneys at Windtberg & Zdancewicz, PLC, provide Arizona residents and businesses with experienced legal representation in all collection matters. We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases. If you need assistance with your collection matters, please contact us at (480) 584-5660.