The Importance of the Proof of Claim Form



Chapter 7 and Chapter 13 of the US bankruptcy laws state that the creditor needs to submit an official document stating that the borrower owes money to the former during the proceedings of a bankruptcy case.



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This document is known as the "proof of claim form". While filing a bankruptcy case, the lender is supposed to submit a list of the creditors for the records. This is done in a bid to ensure that all the creditors receive the sum due to them. It is also directed towards ensuring that the borrower does not have any liability for any kind of perjury in the case. As a borrower, you are liable to be legally punished if you omit the name of any one of the creditors.

As soon as the borrower files a case for bankruptcy, the creditors are immediately informed about filing a proof of claim against the borrower for the amount that they owe to the latter. After the filing of the proof of claim form, it becomes the responsibility of the creditors to submit the necessary documents and meet the deadlines. The things that are at stake include duplicate filing issues, revision deadlines and main filing deadlines.

As far as the borrower is concerned, it is important for his or her lawyer to check with the court for any duplicates that it might have given a miss and verify the authenticity of the claims that were filed. While the case is heard in the court of law, the proof of claim forms of the creditors is constantly reviewed. The priority given to each of the debts differs depending upon the Chapter under which the case is filed. This makes the proof of claim form one of the most important documents in a bankruptcy case.

The laws meant for the filing of a bankruptcy case keep on changing. These may also include changes in the procedure for filing a proof of claim. No matter whether you are a creditor or a borrower, you need to consult a bankruptcy lawyer before filing a proof of claim.

When a debtor declares bankruptcy, it stays on the credit records for a span of 10 years. The rules of the bankruptcy proof of claim court may vary from one state to another. However, the most important point of consideration is the chapter under which the case has been filed, that is Chapter 7 which calls for the liquidation of your property or Chapter 13 which lays down the repayment plan.