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. Even if your claim appears on the debtor’s schedule of liabilities, the debtor may amend schedules at any time, may have wrongly characterized your claim, or may not have full supporting documentation.

File a proof of claim to preserve your right to payment when a debtor files for bankruptcy.

When you file a proof of claim, the following things happen:

1. Your Claim Is Presumed To Be Valid: The Bankruptcy Court presumes that you are owed the amount that you state in your proof of claim.
2. Your Claim Supersedes the Debtor’s Schedules: Your proof of claim supersedes what the Debtor says it owes you. Although the Debtor is required to file a schedule with the Bankruptcy Court identifying all debts that it owes, the Debtor may (a) leave you off of its schedule entirely, (b) identify an incorrect amount that it owes you, or (c) contest the amount that it owes you. In any of these instances, you may receive nothing or less than what you are entitled to receive in the bankruptcy case if you do not file a proof of claim. By filing a proof of claim, you remove all of these risks.
3. You Force the Debtor to Object If It Disagrees: If the Debtor disagrees with your proof of claim, it must present evidence to the Bankruptcy Court to prove that your proof of claim is incorrect. You will receive notice of this and have your opportunity to dispute what the Debtor says.
4. Your Claim Will Be Treated In Accordance With the Law: A proof of claim that has been accurately filed with the Bankruptcy Court must be treated fairly under the law. Although this does not guarantee that you will receive payment in full (or any payment), it does trigger the protections of the Bankruptcy Code that require claims generally to be paid in order of their legal right to payment.

Risks of Not Filing a Proof of Claim

If you do not file a proof of claim before the claims bar date, then you run the risk that the Debtor has not properly scheduled your claim or has scheduled your claim as disputed. If this happens, you may not receive what you are entitled to receive under the law. You should immediately file a proof of claim to protect your interests.

For more information on how to fill out a bankruptcy proof of claim form, click here.

If you would like an easy way to track your customer’s bankruptcy case, any trading of claims within the case, and gain insight from long-term bankruptcy professionals, you can purchase a claim pricing report, or subscribe to updates for the pendency of a case. If you would like to sell your claim, contact us via this website or email us at ClaimHolder@bClaim.com.