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Bankruptcy Proof of Claims

In bankruptcy proof of claims are filed by creditors. This allows the creditor’s claim to be deemed as valid or not valid by a trustee. There are many factors that trustees will review to make the decisions. Proof of claims in bankruptcy often lead to questions like the ones answered below.

I have a judgment against someone in small claims court but just found out they filed for Chapter 7 bankruptcy. Can I file a proof a claim?

In a small claims court judgment against someone that has filed for protection under the bankruptcy code you are not allowed to take any other steps to collect on your judgment except now through the bankruptcy court. If the bankruptcy court ends in a discharge of debts to the person you have a judgment against then you will be barred from collecting your judgment. The majority of Chapter 7 Bankruptcy results in the creditors receiving nothing. The main reason for this is that Chapter 7 cases are typically no asset cases. There is an exception to this this. You can file an objection to the claim as not being dischargeable in Bankruptcy.

I have a proof of claim against a debtor but received a notice that states “please do not file a proof of claim unless you received a notice to do so”. Do I wait or send in the proof?

The reason that the courts are telling you not to file a proof of claim is that there are no assets to be distributed. If assets are found they will send out a notice to the creditors giving them a period of time to file a proof of claim.

Filed claims can be objected by the trustee in Bankruptcy. Assets that are found will be distributed based on the priority of the claims. Unsecured creditors fall at the bottom of the priority. In most Chapter 7 cases there are no funds available to distribute. Assets that are found are usually used up by the administrative claim (the lawyers) before any creditor gets paid. Majority of people do not file a Chapter 7 if they have assets to protect.

How do you file a proof of claim for back rent in a Chapter 13 Bankruptcy?

The court will send a proof of claim form to all creditors. If you have not received a form then you might not have been scheduled as a creditor. Blank proof of claim forms can be obtained at the bankruptcy courts. You will need to attach a copy of the lease to the proof of claim form. The trustee will either accept the claim and payout according to the repayment plan or the trustee will object the claim. Keep in mind that unsecured debts are paid towards the end of the repayment plan.

If someone’s former fiancé has filed a 1 million dollar secured claim in my Chapter 7 Bankruptcy. How would they file a motion to object a proof of claim?

In most situations the person that wants to file a proof of claim, would want to first check if there are assets in their case. If there are no assets then there are no funds to be distributed making all proof of claims irrelevant. If there are assets to be distributed the trustee will request proof of claims when it is time for disbursement. If the claim is unreasonable and not support by documents, then the trustee will likely object the claim.

The person can file a motion with the case caption and dispute the claim. They would site that the claim has no supporting documents proving the debt and that the amount of the claim is unfounded and untrue. Then you can request the claim to be stricken. The creditor will then have the burden of proving the claim.

Having the right information and understanding of proof of claims can help when dealing with handling proof of claims. Experts can help answer questions on submitting proof of claims or objections to proof of claims. Get the answers fast and affordably by asking an Expert online.
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