- Free Consultation: (202) 448-5136 Tap Here To Call Us
What Is a Proof of Claim in Bankruptcy?
In bankruptcy, a Proof of Claim is a creditor’s written statement detailing the creditor’s claim against the debtor. A Proof of Claim is usually filed in Chapter 13 cases. But Proofs of Claim are sometimes filed in Chapter 11 and Chapter 7 cases, as well.
Why file a Proof of Claim?
A creditor may be entitled to monetary distribution made by the trustee in a Chapter 7 bankruptcy. And creditors must also file a Proof of Claim in order to be paid through a Chapter 13 repayment plan. Creditors must also file a POC in order to participate in a Chapter 11 reorganization. A few typical reasons to file a Proof of Claim include:
- Sharing in the distribution of any estate assets
- Providing notice of a claim against the estate
- Participating in the election of a trustee in cases under Chapter 7 or Chapter 11
- Establishing the creditor’s right to receive court notices relating to the bankruptcy case
- Voting for a Plan of Reorganization
Secured creditors need not file a proof of claim in order to preserve their liens in a bankruptcy case.
In Chapter 11 cases, claims and interests listed in the schedules filed by the debtor are deemed to be allowed. In the event a Chapter 11 case is converted to a case under Chapter 7 or Chapter 13, however, a proof of claim must be filed in order for the claim to be allowed. Accordingly, it is wise to file a proof of claim at the outset of a Chapter 11 case to preserve a claim in the event of conversion.
Unsecured creditors that fail to file a Proof of Claim within the statutory period do not share in any distribution of funds resulting from the bankruptcy.
The Proof of Claim form: Official Form 410
To establish a claim in a bankruptcy case, a creditor must properly complete and file Official Form 410. A properly completed and filed proof of claim is prima facie evidence of a creditor’s claim or interest in the bankruptcy estate. Creditors must attach supporting documentation to the Proof of Claim form. Once filed, the debtor or any other party of interest may object to the Proof of Claim.
The basic information required by the official Proof of Claim form includes:
- Debtor identity and bankruptcy case number
- Creditor identity and mailing address
- Amount of and basis for the claim
- Type of claim.
The deadline for filing Proofs of Claim is 90 days after the first date scheduled for the Section 341 Meeting of Creditors. Although relatively simple to accomplish, the filing of a Proof of Claim is a crucial step that must be undertaken timely and accurately.
They Called. They're Glad They Did.
Brian Lee from Lee Legal was an amazing attorney to work with. He took his time, reviewed my documents and we discussed my situation thoroughly. He explained the process and my options as well as gave his recommendation. Not only did he assist, but he ensured that I knew this...
Brian handled a legal matter for me and he was fantastic. He kept me informed of all updates and resolved all issues that were presented. I highly recommend Brian to all seeking legal advice and services.
I was very nervous and scared about going through this process. But Brian was very knowledgeable and helped me through it. I was notified about any and all updates to my case and he was very responsive when I had questions regarding any concerns I had. Although a bit nerve...
I've had the pleasure of working alongside Brian V. Lee for several years, and I can say without hesitation that he is one of the most knowledgeable bankruptcy attorneys in the DMV area. Brian's command of Chapter 7, 11, and 13 practice is exceptional, and his clients in the DC...
I wanted to share my sincere appreciation for Brian and the support he provided during a very difficult time for my grandmother. We were not wealthy, but Brian treated us with genuine kindness and respect, making sure we felt comfortable throughout the entire process. He took the...
Still several years from Public Service Student Loan Forgiveness and saddled with significant student loan payments in proportion to my income, I came to Lee Legal to explore the bankruptcy path. Through his counsel, Brian took the fear out of the process and helped me to...
Brian provided me with a very detailed analysis about my potential case after our first consultation. He promptly responded to all my complex questions, especially navigating student loans and some tax discussions. He is very professional and experienced at what he does, I would...
I had the opportunity to work with Brian at a time when I was challenged by a professional setback and forced with the challenge of making some very difficult legal decisions. Additionally, I worked with him again as I was dealing with some financial issues pertaining to my...
Brian has the amazing talent of taking complicated legal matters and distilling them down to seamless, frictionless resolutions. He is a phenomenal problem solver and a trusted advisor.
I came to Mr. Lee in a panic when I was experiencing health problems and the walls seemed to be closing in on me. Initially, I interviewed four attorneys seeking assistance with my situation. He was one of the most thorough and thoughtful people I’ve ever met. His kindness and...
Brian is both warm and professional. He helped me navigate a financial issue that I had not been looking forward to working on and he made the entire experience non-stressful, receiving a lot of anxiety I had around the matter. He is straight forward and a fantastic problem...
Brian is an amazing lawyer. He was referred to me by a friend who was also pleased with his work. I found him to be affordable, efficient, understanding, and easy to talk to. He really cares for his clients and is very committed to doing his best. He is very knowledgeable and...
This is your last stop in your searches for an attorney. After numerous research and interview with many lawyers, I decided to hire attorney Brian Lee. He is extremely knowledgeable, personable, attentive and diligent. He went above and beyond to file my ch 7 bankruptcy and get a...
