Proof of Claim
What does "Proof of Claim" mean in law?
A proof of claim is a written statement filed by a creditor under 11 U.S.C. section 501 and Bankruptcy Rule 3001, asserting the right to receive a distribution from the bankruptcy estate. The filing must set forth the basis for the claim, the amount owed, and whether the claim is secured, unsecured, or entitled to priority, and must be accompanied by supporting documentation such as promissory notes, invoices, or account statements. A properly filed proof of claim is deemed allowed under section 502(a) unless a party in interest objects, at which point the court holds a hearing to determine its validity and amount. Failure to file a timely proof of claim by the bar date set by the court typically results in the creditor being barred from receiving any distribution.
Definition
A proof of claim is a written statement filed by a creditor under 11 U.S.C. section 501 and Bankruptcy Rule 3001, asserting the right to receive a distribution from the bankruptcy estate. The filing must set forth the basis for the claim, the amount owed, and whether the claim is secured, unsecured, or entitled to priority, and must be accompanied by supporting documentation such as promissory notes, invoices, or account statements. A properly filed proof of claim is deemed allowed under section 502(a) unless a party in interest objects, at which point the court holds a hearing to determine its validity and amount. Failure to file a timely proof of claim by the bar date set by the court typically results in the creditor being barred from receiving any distribution.
Example
A hospital filed a proof of claim for $25,000 in unpaid medical bills, attaching itemized billing statements, and the claim was allowed when no party objected before the claims objection deadline.