Glossary
Proof of Claim
A proof of claim is a written statement, usually on Official Form 410, that a creditor files in a bankruptcy case to set out the amount and basis of what the debtor owes it.
When a customer files bankruptcy, creditors who want to share in any distribution typically need to file a proof of claim with the bankruptcy court or its claims agent. The standard form asks for the creditor's name and address, the amount owed as of the petition date, the basis for the claim, whether any part is secured or entitled to priority, and supporting documents such as invoices, statements, contracts, and evidence of any security interest. A properly filed claim is generally presumed valid unless someone objects.
Deadlines depend on the chapter and the court. In chapter 7 and chapter 13 cases, the deadline for most non-governmental creditors is generally 70 days after the petition date, although in some chapter 7 cases with no expected assets creditors are told not to file until notified. In chapter 11 cases, the court sets a claims bar date. In chapter 11, claims listed on the debtor's schedules as undisputed, noncontingent, and liquidated may be deemed filed, but creditors should check the schedules carefully and file their own claim if the amount or classification is wrong. Missing a deadline can mean losing the right to any distribution.
Here is a fictional example. A janitorial supplies vendor, CleanPath Distribution, is owed $38,500 by a property management company that files chapter 11. CleanPath reviews its records and finds that $9,200 of goods were received by the debtor in the 20 days before the filing. It files a proof of claim listing $29,300 as a general unsecured claim and $9,200 as a 503(b)(9) administrative claim, attaching invoices and delivery receipts, well before the bar date.
A proof of claim matters to a creditor because it is the creditor's ticket to any payout in the case. Accurate amounts, correct classification, complete documentation, and filing on time all affect what the creditor ultimately recovers.
Example
CleanPath Distribution files a proof of claim for $38,500, splitting it into a $29,300 general unsecured claim and a $9,200 503(b)(9) claim with supporting invoices.