What Is a Proof of Claim in Bankruptcy?

In bankruptcy, a proof of claim is a form a creditor must file to receive funds from the bankruptcy estate. After the creditor submits a proof of claim to the court, the trustee appointed to administer the case will pay it according to Chapter 7 priority rules or a Chapter 13 repayment plan.

What Is a Proof of Claim?

A proof of claim is a form creditors file with the court before they are paid in bankruptcy. The proof of claim requires creditors to verify the right to receive payment by answering questions and attaching corroborating documents like contracts.

In a no-asset Chapter 7 case, creditors won't file proof of claim forms because there won't be any assets to distribute. However, funds are available for the trustee to distribute in Chapter 13 and Chapter 7 asset cases. Find out about the differences between Chapters 7 and 13.

The Debtor or Creditor Can File a Proof of Claim

Although a creditor will typically file the proof of claim, the debtor can file for a creditor to ensure the creditor gets paid through the bankruptcy. For instance, suppose you filed a Chapter 13 bankruptcy to catch up on your mortgage arrears and save your home. You would want the mortgage lender to get paid through your repayment plan. If the mortgage company fails to file a claim in your case, you could submit it yourself.

Completing a Proof of Claim

In general, a proof of claim must include:

• the debtor's name and case number
• the creditor's name
• notice and payment addresses for the creditor
• claim amount as of the bankruptcy filing date
• whether the debt is a secured, unsecured, or priority claim, and
• the creditor's basis for the claim.

The creditor must also attach supporting documentation substantiating the claim, such as a promissory note, loan agreement, or deed of trust. You can download a copy of a proof of claim form from the U.S. Court bankruptcy form page.

Deadline for Filing a Proof of Claim

Creditors must file proof of claims by the deadline or "claims bar" date listed on the bankruptcy notice mailed by the court. It's the last day a creditor can file a proof of claim form.

For most creditors, the filing period is 70 days after the petition filing date. However, government entities have up to 180 days after the petition filing date to file a proof of claim. If a creditor doesn't file a proof of claim, it can't get paid through your bankruptcy.

Objecting to a Proof of Claim

If you don't agree with a creditor's proof of claim, you can object to it. The specific procedures for objecting to proofs of claim depend on the rules in your jurisdiction. Expect to:

• obtain a hearing date
• fill out the required forms
• explain why you think the proof of claim is wrong (attaching any necessary documentation)
• file the objection with the court, and
• serve it on the affected creditor.

In most cases, debtors object to proofs of claim because the claim amount is incorrect, the creditor classified the debt incorrectly, for instance, as a secured or priority debt, or there is no supporting documentation attached to the claim form.