Proof of Claim in Bankruptcy: What It Is and What It Does

What is a proof of claim, exactly?

A proof of claim is a written statement of a creditor's claim, and it must substantially conform to Official Form 410 (Fed. R. Bankr. P. 3001(a)). Only a creditor or the creditor's agent may sign one, with narrow exceptions set out in the rules. The amounts are stated as of the date the bankruptcy case was filed, not as of today. If the claim is based on a writing, the creditor must file a copy with the claim, or a statement explaining that the writing was lost or destroyed. Where the debtor is an individual, the creditor must also file an itemized statement of the principal amount and any interest, fees, expenses, or other charges incurred before the petition was filed, and for any claimed security interest, the amount needed to cure a default as of the petition date. A claim secured by the debtor's principal residence requires Form 410A as well (Fed. R. Bankr. P. 3001(c)).

Why does a proof of claim matter in a bankruptcy case?

Claims determine who gets paid and how much. A claim filed under 11 U.S.C. § 501 is deemed allowed unless a party in interest objects; if an objection is made, the court determines the amount after notice and a hearing (11 U.S.C. § 502(a)-(b)). An allowed claim is what the trustee works from. In Chapter 7, the trustee uses the proofs of claim to make distributions from whatever is recovered for the estate; in Chapter 13, the trustee may use the information in the claims to object to the repayment plan, and creditors may object as well (Bankr. E.D. Mich. official page — Proof of Claim). The rules also account for a creditor that stays silent. If a creditor does not timely file, the debtor or the trustee may file a proof of that creditor's claim, and so may an entity that is liable with the debtor or that secured the debt (11 U.S.C. § 501(b)-(c)).

How does it work in practice?

The court sends notice. A creditor receives a notice from the bankruptcy court stating that a claim may be filed and the deadline for filing it. In Chapter 13 cases, creditors may always file proofs of claim, and the deadline appears on the notice sent to all creditors when the case opens. In Chapter 7, creditors commonly file only if the trustee identifies assets that may be liquidated; the deadline is then stated in a notice to creditors (Bankr. E.D. Mich. official page — Proof of Claim; U.S. Bankr. Ct. D. Ariz., Proof of Claim Form and Instructions). Mechanics vary by district. Many courts offer an electronic proof of claim application that needs no login or password, while paper claims may be delivered or mailed to the clerk's office, and some districts require unrepresented creditors to file on paper. Supporting documents should be attached, and personal identifiers must be redacted. Check your own court's page first.

What do people get wrong about it?

Three things trip people up. First, a proof of claim is the creditor's document, not the debtor's — receiving a copy is notice of what a creditor says it is owed, not a demand requiring a response from you. Second, filing a claim does not decide payment: courts state that filing a proof of claim does not mean the creditor will be paid all, or any, of what is owed, because the trustee pays valid claims from whatever funds the estate has (Bankr. E.D. Mich. official page — Proof of Claim). Third, a filed claim is not automatically correct. It stands unless a party in interest objects, and 11 U.S.C. § 502(b) lists grounds for disallowing part or all of it, such as unmatured interest. Deemed-filed rules are chapter-specific — 11 U.S.C. § 1111(a) covers Chapter 11 and § 925 covers Chapter 9.

Frequently asked questions

A proof of claim showed up in my case. Do I need to respond?

No response is required from a debtor simply because a creditor filed a claim. A claim filed under 11 U.S.C. § 501 is deemed allowed unless a party in interest objects (11 U.S.C. § 502(a)), so the practical question is whether the amount and the supporting documents look right. If they do not, an objection is the mechanism, and that is a step to discuss with a bankruptcy attorney.

Do creditors file proofs of claim in every Chapter 7 case?

Not usually. In Chapter 7 cases, creditors commonly file claims only when the trustee identifies assets that may be liquidated, and the trustee or court then sends creditors a notice stating the deadline (Bankr. E.D. Mich. official page — Proof of Claim). In Chapter 13, creditors may always file, and the deadline appears on the notice sent to creditors when the case opens.

Can a debtor or trustee file a claim for a creditor?

Yes. If a creditor does not timely file a proof of its claim, the debtor or the trustee may file a proof of that claim (11 U.S.C. § 501(c)). An entity that is liable to the creditor along with the debtor, or that secured the debt, may also file (11 U.S.C. § 501(b)). This commonly matters for co-signed debts.

What is Form 410?

Form 410 is the official proof of claim form. Fed. R. Bankr. P. 3001(a) requires a proof of claim to substantially conform to it, and courts direct creditors to use the current version. Many districts offer an electronic proof of claim tool that generates the form from information the filer enters, and paper filing at the clerk's office or by mail remains available.

Sources

• 11 U.S.C. § 501 — Filing of proofs of claims or interests
• 11 U.S.C. § 502 — Allowance of claims or interests · official source
• Fed. R. Bankr. P. 3001 — Proof of Claim · official source
• 11 U.S.C. § 1111 — Claims and interests
• 11 U.S.C. § 925 — Effect of list of claims
• Bankr. E.D. Mich. official page — Proof of Claim
• U.S. Bankr. Ct. D. Ariz., Proof of Claim Form and Instructions

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