Bankruptcy
Proof of Claim
A proof of claim is the form a creditor files in a bankruptcy case stating how much the debtor owes and why.
Filing it is how a creditor gets paid anything. The form identifies the amount, whether the claim is secured, and any priority status, and supporting documents such as the contract or account statements are attached.
Deadlines, called bar dates, are strict, and a properly filed claim is presumed valid unless someone objects. Claim objections are their own contested matters within the case.
Claim trading is common in large cases. Investors buy claims from trade creditors at a discount, and transfer notices on the docket are how the public sees a distressed debt market operating in real time. Secured creditors sometimes need not file at all to keep their lien, but failing to file usually forfeits any claim to a distribution, which is why claim deadlines are watched closely.
How it appears on a docket
CLAIMS REGISTER shows Claim 42-1 filed by Harbor Bank, N.A. in the amount of $318,204.11, secured.
Governing rule
11 U.S.C. Sec. 501; Fed. R. Bankr. P. 3001-3003
Related terms
- Trustee — A bankruptcy trustee is the person appointed to administer a bankruptcy estate: gathering assets, reviewing claims, and distributing money to creditors.
- Chapter 11 Bankruptcy — Chapter 11 is reorganization bankruptcy, where a business keeps operating while it negotiates a plan to restructure its debts.
More on bankruptcy
See this term in a real case
Search federal court records and read the filings where proof of claim actually shows up. New to federal dockets? Start with how to find a federal case.