priority bankruptcy claim

Anatomy of a Proof of Claim in Bankruptcy

The proof of the claim is the document setting out what a certain creditor claims that it by a debtor is owed. It is distributed to the base point for the receipt of a release of all funds by the bankruptcy trustee. The proof of the same claim applies to both Chapter 7 and Chapter 13 bankruptcies. In the event of bankruptcy, Chapter 7 case, creditors are only recommended, proof of claims, if provided by the office of the court, that it may manage assets, file will be.

The proof of the claim is a list of the debtor name, number and name of the creditor Submission of proof of claim. The creditor address and phone number will also be offered.

It is important that the creditor list the amount of the claim from the date of notification. It is also the basis of borrowed debt, for example, money, services, etc. It is important for the plaintiff to be as detailed as To prevent possible that knit the assertion contradicted or as vague.

If the claim is secured by the property, the type of property is specified (real estate, Motor vehicle, other). The value of the property and the interest rate is arrearage, together with a lot listed.

Certain claims are entitled to a Priority under bankruptcy law. These domestic support obligations, wages, salaries and commissions, within 180 days after the submission include, contributions to an employee benefit plan of up to $ 2,425.00 of deposits to purchase, lease or rental of property or services for personal, family or household VAT, taxes or penalties to government entities and others.

Documentation to provide for the claim. For example, the Creditors copies of statements or documents which support the contention Attach redacted. In addition, a summary made available. If documentation not provided, the creditor may help to explain.

Finally, the assertion by the person filing the claim is signed.

In certain cases, it will put a double claim of a creditor. If this happens, either the trustee or attorney of the debtor and one should Application are marked as a duplicate of the claims. This happens because creditors have often outside collection dealing with specific weapons debtor cases. Of course Filing a double claim has never been as focused, that would be a material breach of bankruptcy law and ethics.

If an individual is a believer this person should consider hiring legal counsel to handle the filing of the lawsuit and the general administration of the case.

About the Author

David M. Siegel is the author of Chapter 7 Success: The Complete Guide to Surviving Personal Bankruptcy. He is a member of the American Bankruptcy Institute and currently practices bankruptcy law in Chicago and its surrounding suburbs. Additional information is available at:
Chapter 7 Bankruptcy

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