In bankruptcy, there is such a thing such as the proof of claim which creditors need to file after the meeting with the creditors. Before they get paid through the bankruptcy you filed, they need to submit the proof of claim first; otherwise they will not be paid at all.
A proof of claim is a form used by the creditor to indicate the amount of the debt owed by the debtor on the date of the bankruptcy filing. In Chapter 7 and 13 bankruptcies, all the unsecured creditors are required to file the proof of claim in order for their claims to be allowed by the bankruptcy court. There are certain secured creditors who no longer need to file for the proof of claim like lien holders for example.
The bankruptcy law states that the creditors must file the proof of claim within 90 days from the first meeting of creditors. Government entities must file a proof of claim within 180 days after the date of the order for relief. The notice which the creditors receive for the certain day which the meeting of the creditors will be held also includes the deadline for the submission of their proof of claims.
There are many things which are included in the proof of claims. Some of those which are needed are:
* identification of the debtor and its bankruptcy case number
* identification of the creditor and the mailing address for receipt of notices whether or not the claim is filed as an original claim or an amended claim
* the amount owed as of the petition date
* the basis for the claim, and
* identification of the type of claim (secured or unsecured).
In the no-asset Chapter 7 bankruptcy, a court may instruct creditors not to file a proof of claim because there will be no money to distribute. And if the assets become available later on, then the bankruptcy trustee will simply inform the creditors to file the proof of claim before a specific deadline.
The same as how a creditor can object to the discharge of a debtor, a debtor can also object to the proof of claim of a creditor. Some of the most common reasons that someone might object to a claim include:
* the amount is incorrect
* the claim includes improper interest or other penalty charges
* the claim indicates that it is a priority or secured claim when it is not
* the creditor filed the claim with the purpose of harassing the debtor, or
* the creditor did not attach supporting documentation.
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