Filing a Proof of Claim in Bankruptcy is something creditors do. During troubling times more and more people and organizations are turn to bankruptcy. Generally speaking people either file bankruptcy under Chapter 7 or Chapter 13. In either case, the person filing the bankruptcy has to list all of their creditors. This could include you if you’re owed money. This may mean, you’re never getting paid. However if you follow some simple steps you may still collect your debt. The foundation rule is to get paid in any bankruptcy you must file a Proof of Claim in the Oklahoma Bankruptcy Court.
Creditors File Proofs of Claims
When someone owes you money and they file a Chapter 7 bankruptcy they are looking to discharge what they owe. A Discharge is a court order that relieves them of the obligation to pay. But before they receive a discharge a debtor must disclose all assets and debts. This is to insure the debtor cannot pay his creditors. The bankruptcy court will appoint a trustee. The trustee’s job includes examining all of the debtor’s disclosures to determine whether there are enough assets to pay creditors. The trustee will only consider paying creditors whom have filed a Proof of Claim.
Filing a Proof of Claim does not mean you’ll be automatically paid. However, a Proof of Claim constitutes prima facie evidence of the validity and amount of your claim. The Proof of Claim informs the trustee in the case about your claim. To satisfy the court, the Proof of Claim must include the debtor’s name, the case number, creditors name, mailing address, amount owed, the basis for the claim and whether the claim is secured by collateral, priority or unsecured. There is generally a form available on the Court’s website. Once all the claims are filed secured and priority claims are paid first. Then unsecured creditors are paid if there are enough assets to cover the claims. But the basic rule applies; if you do not file a Proof of Claim you will not get paid.
Filings Objections to The Proof Of Claim
A Proof of Claim is recognized as valid if there are no objections filed. Anyone that may be negatively impacted by the claim can file an objection. If an objection to your Proof of Claim is filed with the Bankruptcy Court, the person objecting must prove to the court that the claim is invalid and should not be paid. Typically the objecting party will be the trustee, another creditor, or the debtor themselves.
Bankruptcy Attorneys Near You
Whether you’re a person filing bankruptcy or a creditor in the bankruptcy listing all of the creditors is important. If you don’t list the creditor you might not be able to get the debt forgiven. If you’re owed money and you don’t file a proof of claim you may not get paid any money if there’s any to get. Regardless of which party you are if you need information involving bankruptcy law we can help. Free case evaluation with an Oklahoma attorney at 918.739.8984
