How To Fill Out A Bankruptcy Proof of Claim Form (and Preserve Your Legal Rights)

To preserve your legal rights to payment, it is important that you submit to the Bankruptcy Court a completed proof of claim form that memorializes how much the Debtor owes you, and why. This is not a legal pleading that must be completed by an attorney (although it is a good idea to consult an attorney if you can). Your proof of claim will be kept by the Clerk of the Bankruptcy Court (or a claims agent), but will not appear on the docket of the bankruptcy case. Make sure to submit your proof of claim form as soon as possible, and in any event well in advance of any deadline to submit proofs of claim, known as the Claims Bar Date.

Get a Proof of Claim Form

The Debtor likely sent you a proof of claim form. If it did not, then:

• if the Debtor has a claims agent, you can request a proof of claim form from the claims agent or its website; or
• you can contact the Debtor and ask it for a proof of claim form, and it usually will provide you with one; or
• you can obtain a generic proof of claim form that can be filed in any bankruptcy case here.

You may be able to submit a claim directly via the claims agent website. The questions should be the same as the printed form and scanned electronic file of evidence supporting your claim is uploaded directly to the claims agent site.

Read the Instructions

The proof of claim form includes detailed instructions that may answer many questions that you have. Read and follow these instructions.

Properly Identify the Main Parties

The top portion of the proof of claim form requires you to identify the Debtor, the Debtor’s bankruptcy case, and your company. It is important that you complete these fields accurately.

• The “Debtor” is the company that owes you money and that is in bankruptcy.
• The courts are split into many districts. Examples of districts include the Southern District of New York, the District of Delaware, and the Northern District of Illinois. The district should be referenced on any document sent to you by the debtor or can be easily ascertained by a google search.
• The “Case Number” is the number assigned to the Debtor’s case by the Bankruptcy Court. You can find this number on all of the pleadings in the Bankruptcy Case, and it should be on any notice the Debtor has sent you. It is common for affiliated companies to file many cases together at the same time; make sure you identify the Case Number that corresponds to the debtor that owes you money. The number will be in the form 12-12345.

Part 1: Identify the Claim

• Question 1: You or your company are the “Creditor”. It is important to use the legal names of you (or your company) and the Debtor. If you have a contract, invoice, or other written agreement, copy the names exactly as they appear on that document.
• Make sure to add a phone number and email address that the Debtor can use to contact you. The Debtor will use this information to send you legal notices.

Part 2: Give Information About the Claim as of the Date the Case Was Filed

In part 2 of the proof of claim form, describe your claim in a way that will allow the Bankruptcy Judge to understand what you are owed and why.

• Question 7: If possible, identify the precise dollar amount of your claim. Include interest, penalties, and fees.
  • If you do not know the precise amount the Debtor owes you, then describe your claim and why you cannot determine the exact amount. This will be the case if (for example) you have a lawsuit against the Debtor or have guaranteed an obligation of the Debtor’s that has not matured.  If necessary or helpful, attach additional information that describes a pending lawsuit, legal claims, indemnity claims, guaranty claims, or any other legal theory under which the debtor owes you money.
  • Be accurate, and do not exclude any legal theory that gives rise to your right to payment from the Debtor. If you do not include it in your proof of claim, you may or may not be able to amend your claim at a later date.
• Question 8: In the “Basis for your claim” section, concisely identify why the Debtor owes you money. For example, “unpaid invoices for goods or services rendered” or “contract payments” or “legal claim for slip and fall injury”.
• Question 9: Describe anything that secures your right to payment. Most often this will be collateral that secures repayment of a loan or other obligation. Identify security specifically. If your claim is not secured, you can skip Question 9 of the proof of claim form.
• Question 11: You may have a right of setoff or recoupment that secures your right to payment. Setoffs can include accounts payable or rebates owed to the debtor, even if generated under a separate agreement.
• Question 12: Check “Yes” only if your claim falls into one of the categories described in Section 507 of the Bankruptcy Code, which specifically identifies special types of claims that the law gives priority. These are claims for employee wages, child support obligations, and taxes, among other types of claims. Review Section 507 of the Bankruptcy Code here to see if some or all of your claim falls into one of these specific categories.
  • Larger debtors typically file a wages motion on the first day to continue payroll and expense reimbursement in the normal course so most employees do not have claims. These employees could still have a claim under, for example, a discretionary bonus program. Those claims should also be filed and the amount included as Wages, salaries, or commissions up to the current $12,850 limit. The remainder of the claim is likely general unsecured.
• Question 13: Debtors will sometimes obtain court approval to modify the proof of claim form to include question 13 regarding 503(b)(9) claims. If your form does not include question 13 but your prepetition claim does include goods delivered to the debtor (based on the FOB point) within the 20 days prior to filing, you should indicate the amount of your claim that qualifies on this form.
  • 503(b)(9) claims are only for goods, not services, received by the debtor within 20 days of filing and have a special administrative priority assigned to them.  Those claims can be paid:
    • upon approval from the bankruptcy court through a formal motion regarding 503(b)(9) claims, often included in the first day motions; or
    • in due course after approval from the bankruptcy court; or
    • at the end of a case prior to emergence.

Attach Documents That Support Your Claim

Include at the end of your proof of claim copies of documents that establish your right to payment. This typically includes copies of invoices, signed delivery receipts, contracts, promissory notes, judgments, statements of account, or any other document that you think supports your right to payment. Make sure to redact confidential or sensitive information such as unit pricing, and to include copies of documents (and not authentic, originally signed documents).

Part 3: Sign and Send Your Proof of Claim Form and Supporting Documents

You likely received a notice of bankruptcy that will tell you where to submit a proof of claim form. If you did not, you should contact the Debtor, the bankruptcy court, and/or the claims agent to find out where to send your proof of claim. Make sure to keep a copy of your proof of claim form and all supporting information and (if you do not submit your claim electronically) proof of delivery of your proof of claim form.

What Happens Next

After filing your proof of claim, it is important to follow the Bankruptcy Case to find out what you will receive from the debtor. For a streamlined version of the case events, proprietary analysis, and actual claim transactions that are occurring, you can purchase an individual Claim Pricing Report, or you can subscribe for updated reports throughout the duration of the case.

Due to the nature of bankruptcy law in the United States, many claims are not paid in full, and payment often takes months or years. To see what you can expect to happen after you file your proof of claim, click here.

If you would like to discuss whether or not you may be able to sell your claim for immediate cash, contact us here or email info@bClaim.com.