What is a Proof Of Claim?

Creditors are required to file a so called proof of claim with the United States bankruptcy court to collect against a debtor's estate. The form is typically two pages long. You have to specify the name of the debtor and your case number as well as the date that the debt was initially incurred and the complete amount of your claim.

If you have a secured claim, you'll have to describe the collateral in detail on the form, be it an automobile, a piece of real estate, or another parcel of property. In addition, you need to disclose the cash value of the arrearage and the money value of the collateral. If you are putting forth an unsecured low priority claim, you must check a box, and if you are putting forth a priority claim, you need to indicate the level of your claim's priority.

To qualify for a priority unsecured claim, creditors need to specify whether the debt relates to a benefit plan for employees, taxes or appropriate penalties, deposits for certain services, commissions and wages, or property rentals. Once the creditor signs the proof of claim, the court considers it a final calculation. You may add on documents to support your claim against the debtor or provide an explanation of why you are unable to produce supporting documents at this time. It's advised that creditors send copies of these documents (such as gift receipts) to avoid losing them.

Finally, the creditor needs to include a copy of the proof of claim filing that's been date stamped, and the creditor must indicate if this form amends or otherwise revises/replaces a past claim against the self same debtor. Creditors need to peruse proof of form claims carefully, since fraudulent paperwork can result in fines approaching half a million dollars as well as prison time.

If you would like the debtor to remunerate you for any expenses relating to the administration of proof of claim paper work, you need to file a request per the US code statute 503. It may help to have a bankruptcy attorney review the paperwork prior to filing it with the court, so that later contestations don't disqualify your claim or render it at a lower priority for payback through the liquidated assets of the estate.