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Bankruptcy

proof of claim

A proof of claim is the form document a creditor must complete to be paid from the assets of a bankruptcy case. The proof of claim generally tells the bankruptcy trustee whether the claim is secured or unsecured, priority or nonpriority, and the amount of the claim. All creditors who want to be paid from the bankruptcy estate must file a proof of claim in Chapter 7, 12, and 13 bankruptcy cases—except in Chapter 7 no-asset cases, as there are no funds for distribution to creditors.

In South Carolina, as in all states, a proof of claim is a formal statement that creditors must file to assert their right to receive payment from a debtor's bankruptcy estate. This document is necessary in Chapter 7 (liquidation), Chapter 12 (adjustment of debts of a family farmer or fisherman), and Chapter 13 (individual debt adjustment) bankruptcy cases. The proof of claim form requires creditors to indicate whether their claim is secured or unsecured, whether it has priority status, and the claim's amount. However, in Chapter 7 cases where the trustee has determined there are no assets to distribute, creditors typically do not need to file a proof of claim because there will be no distribution. If assets become available, the trustee will notify creditors, and they will be given an opportunity to file a proof of claim. It's important for creditors to file the proof of claim by the specified deadline to preserve their rights to any distributions from the bankruptcy estate.

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Bankruptcy

proof of claim

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Bankruptcy

proof of claim

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