Chapter 11 Proof of Claim
A chapter 11 bankruptcy proof of claim can make the difference of whether you get paid at all for the full or partial amount the debtor owes you. Properly preparing this proof of claim and filing it within the appropriate time limit preserves your right to repayment as part of the reorganization plan.
What Is a Proof of Claim?
A proof of claim is an essential element in the bankruptcy process. It documents your right as a creditor to repayment from the debtor. A debtor’s chapter 11 bankruptcy filing may significantly impact a creditor and can jeopardize its ability to handle its own financial responsibilities. Filing a chapter 11 bankruptcy proof of claim can affect whether, how, and when you receive repayment from a debtor.
The proof of claim describes the type of claim, priority status, and the amount of the outstanding debt.
Am I Required to File a Proof of Claim for Chapter 11?
Chapter 11 creditors do not need to file a proof of claim if the debtor has accurately described the nature and amount of the debt owned in its schedules and has not designated the debt as disputed.
A creditor will need to file a proof of claim form if any of the following problems exist on the debtor’s schedule of assets and liabilities:
- The category of debt is incorrect
- The amount listed is not correct
- The creditor is not listed
- The claim is designated as disputed, unliquidated, or contingent
Even if you are not technically required to file a proof of claim form in a chapter 11 bankruptcy, doing so can provide you with important benefits. For example, the proof of claim will supersede the information regarding the claim that the debtor listed in their schedule of assets and liabilities. Additionally, if you do not file a proof of claim form, the bankruptcy court will accept the information the debtor listed. Filing your form allows you to dispute any inaccuracies in the debtor’s schedules.
How to File a Form 410 Proof of Claim
Typically, a creditor will receive a blank bankruptcy chapter 11 proof of claim form after the debtor files bankruptcy, along with the notice of bankruptcy. The notice will provide information on how to file the proof of claim and where you must submit it. It will also include a deadline or “bar date” representing the last date you can file it. The process of filing the claim can be time-consuming and complex, so we recommend consulting with an experienced bankruptcy lawyer if you receive notice of a bankruptcy petition that affects you.
To complete the form, you will need information about the debtor and the debt, including:
- The debtor’s name
- The bankruptcy case number
- Information about you, including your name, business, and contact information
- The category of debt (secured, unsecured)
- The amount owed as of the date of the petition
- Supporting documentation of the basis of the claim, such as invoices, delivery receipts, contracts, security agreements, monthly statements, or ledgers
- Your signature
You must submit your proof of claim form to the appropriate bankruptcy court in a timely manner.
When Do I Have to File a Proof of Claim?
You must submit your proof of claim form by the bar date listed in the notice you receive.
How Sasser Law Firm Can Help
Filing proof of claim forms is just one way our highly experienced bankruptcy attorneys at Sasser Law Firm can help you. We have worked exclusively on bankruptcy cases for over 20 years. We have four attorneys who understand the complexities of bankruptcy law. When you hire us, you will work directly with an attorney, not be passed off to support staff.
Learn more about your creditor rights and how we can help by calling us or contacting us online today.
For more than 20 years, the Sasser Law Firm has been helping individuals and business owners sort through financial hardships to see the light at the end of the tunnel. Our North Carolina bankruptcy attorneys are all board-certified specialists, which means we have passed a complex exam, undergone a thorough peer review, and continue to earn legal education credits in this ever-evolving area of law.