Claim Holder
What Happens After You File A Proof Of Claim, and When You Might Get Paid
It is frustrating, after extending credit based on a long relationship and verbal assurances, when a customer files for bankruptcy, leaving a balance that cannot be collected without court approval. Moving forward it is important to protect your rights to maximize both pre and postpetition value to your company. But after filing a proof of claim, the bankruptcy process can be a black box for suppliers trying to make the best decision going forward. Read More
Why File a Proof of Claim?
Filing a proof of claim against a bankrupt company that owes you money is the most important step you can take to protect your claim. Read More
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. Read More
Filing a Proof of Claim for Toys R Us Administrative Expenses
With the liquidation of all Toys R Us stores in the US, suppliers will need to file a proof of claim for postpetition invoices to ensure payment. These admin claims then get paid out by the estate if and when cash becomes available from the liquidation of unencumbered assets. Read More
Recommended Reading
The following articles provide insight to the practice of trading in bankruptcy claims and were published by parties with no connection to Bankruptcy Claim Exchange:
An Introduction to Bankruptcy Claims Trading
Bankruptcy Claims Trading: What is it? How do I maximize my returns?
Monetizing Your Bankruptcy Claims: An Introduction To The Claims Trading Market