Filing a Bankruptcy Proof of Claim as a Secured Creditor

Filing a Bankruptcy Proof of Claim as a Secured Creditor

In the event of a debtor’s bankruptcy, secured creditors are paid before unsecured creditors; therefore, creditors want to file a Proof of Claim as a secured creditor whenever possible.

What is a Secured Creditor?

The United States Bankruptcy Court defines a secured creditor as “a creditor holding a claim against the debtor who has the right to take and hold or sell certain property of the debtor in satisfaction of some or all of the claim.

Properly executing a mechanic’s lien, bond claim or UCC, grants the creditor a secured interest, which increases the likelihood of payment in the event of a bankruptcy. Mechanic’s Liens, Bond Claims & UCCs are credit tools, proven to put creditors in the best possible position to get paid, but they aren’t the only tools available. A creditor may also be considered secured if there is a Corporate Guarantee or Personal Guarantee in place.

What is a Proof of Claim?

A Proof of Claim, per The United States Bankruptcy Court, is “a written statement and verifying documentation filed by a creditor that describes the reason the debtor owes the creditor money. “

The Proof of Claim is filed by creditors, in order to notify the bankruptcy court there is money owed to them by the debtor. Typically a Proof of Claim will include the amount of the claim, the basis for the claim, whether or not it is a secured claim and of course, backup documentation supporting the claim.


Although the Proof of Claim form may seem straightforward, here are a few common missteps:

  • Be on Time! Too often, creditors miss the bar date to file.
  • Know your Claim! Including all amounts owed for all accounts and affiliates is a must.
  • Secured or Unsecured, that is the Question? Know whether or not you are a secured creditor and file properly.

Did You Know?

A creditor can have a secured & unsecured claim in the same bankruptcy! If you need assistance with filing your Proof of Claim or have questions on how to become a secured creditor, please contact us.

Most Recent Resources


Help Your Customer Understand UCC Filings

Filing UCCs? Send your customer this letter to help them better understand the UCC filing and how it impacts them.
Read More
lien index
Lien Index

NCS Credit Lien Index 2023 Q2

The Lien Index decreased 16 points in Q2 2023 to 47. The significant decrease comes as the revised Q1 2023 Index skyrocketed to 63.

Read More
live webinars
Live Webinar

Common Mistakes In UCC Filings

A UCC filing is an incredible credit tool; however, taking and perfecting your security interest requires strict compliance with UCC Article 9. Make sure your UCCs are prepared and filed correctly, or you could jeopardize your security.
Read More