3-in-3 Topic is Bankruptcy Proof of Claim
3-in-3 is a 3 question, 3 minute interview with an NCS colleague.
Today’s 3-in-3 features Danielle Moon of our Collection Services Group. Read on to learn more about the ABCs of a Bankruptcy Proof of Claim.
What is a Bankruptcy Proof of Claim?
Danielle: A bankruptcy proof of claim is a form used by the creditor to indicate the amount of the debt owed by the debtor on the date of the bankruptcy filing. Typically, creditors receive a notice from the bankruptcy court advising their debtor has filed for bankruptcy protection with instructions for filing a proof of claim and the deadline for filing.
What Should Creditors Be Aware of When Filing a Proof of Claim?
Danielle: You always want to file your proof of claim using the full balance, both secured and unsecured, on all projects or open accounts. Often, we see creditors filing a proof of claim for the amount on a specific job that is past due or in collections. When filing a proof of claim, always be sure to include the entire balance owed to avoid any unnecessary amendments.
Always double-check that you file your proof of claim correctly. Make sure the secured and unsecured amounts are identified properly. Be aware that mechanic’s liens, bond claims, UCCs and judgments may allow you to file a secured proof of claim, putting you in a better position to get paid.
Is There a Deadline to File Your Proof of Claim?
Danielle: Yes. You must consider your deadline or the bar date. The bankruptcy courts will typically set a date by which time a creditor’s proof of claim must be filed, commonly known as the bar date. The bar date can be found within the bankruptcy notice or, if it’s set at a later date, within the docket report of the bankruptcy. The court will send a notification on the bar date to all creditors that are listed in its original petition, and the proof of claim must be filed in the same court in which the bankruptcy case was filed.
These are all great tips to consider when filing a bankruptcy proof of claim. Know your ABCs!
Always include the entire amount you are owed on the proof of claim.
Be sure you correctly complete and file your proof of claim.
Consider the deadline, aka the bar date, and file your proof of claim on time.
Remember that errors and inaccuracies may affect the validity of your proof of claim. Don’t take that risk. NCS can help you. We can file the proof of claim on your behalf.