One aspect of the Bankruptcy Code that has remained uniform, efficient and relatively inexpensive is the proofs of claim filing procedure. Designed upon the assumption that a claimant can briefly summarize the basis for the debt due, the form requests information as to who the creditor is, the particulars of the debt, including whether the debt is secured or priority, and the documents, if any, that support the claim. In short, accurate information may bear significantly upon how quickly the debt is paid, or whether it is paid at all.
In Chapter 7 and 13 bankruptcy cases, a creditor must file a proof of claim within 90 days after the first date set for the meeting of creditors. An exception to this rule is in those Chapter 7 cases where the Trustee believes there are no assets available for distribution to creditors. In that event, a Notice to creditors will indicate that the filing of a proof of claim will be unnecessary unless assets subsequently become available. In a Chapter 11 bankruptcy, a creditor does not have to file a proof of claim unless the claim is not listed on the debtor's Schedules or if the Schedules list the claim as disputed, contingent or unliquidated. A Chapter 11 proof of claim must be filed within the time set by the Court as provided in the Notice of Commence of Case.
By law, a proof of claim signed and filed with the court is deemed allowed until someone objects to it. That presumption makes getting into a bankruptcy case easy for a creditor. However, getting out with the debt paid may not be so easy.
For more information on filing bankruptcy claims, contact Robert A. Gordon, a partner in the Tydings & Rosenberg LLP Creditors Rights Group at 410-752-9749 or by e-mail at rgordon@tydingslaw.com.