In my May 26th post, I raised several questions that unsecured creditors in any Chapter 11 case should know the answers to and take action where appropriate. In my prior posts, I have already addressed “first-day motions” and creditors’ meetings. Let’s move on to three more questions about claims.
The answers to these three questions are VERY important. Why? You may not be eligible to receive any money from the debtor if you do not know the answers and act accordingly!
1) Is my claim properly listed on the debtor’s Schedules?
This question is simple to answer. Peruse the debtor’s Schedules filed with the Court and see if the debtor has listed you and whether the amount is correct. If the answer is NO, you need to file a proof of claim before the deadline set by the Court.
2) Has the debtor listed my claim as disputed, unliquidated or contingent?
The answer to this question is also simple. Look at the box where your claim is listed (if it is listed) on the Schedules. There is a section that says…
As of the petition filing date, the claim is:
Check all that apply.
If one of these boxes is checked, the answer is YES and you need to file a proof of claim before the deadline set by the Court.
3) When is the deadline to file a proof of claim?
The clerk of the court (or in some instances the Debtor), send a notice out to all creditors LISTED on the debtor’s Schedules which will set forth the deadline for filing a proof of claim. If you are not listed as a creditor and do not receive the notice, but are aware of the bankruptcy, you can find out the deadline from looking at the Court docket.
DO NOT miss the deadline to file a proof of claim! There are very few acceptable excuses for late-filed claims and more likely than not, your late-filed claim will be DISALLOWED.
Heather L. Ries is an attorney with the Financial Restructuring and Bankruptcy Department of the law firm of Fox Rothschild LLP. Heather focuses her practice in matters related to bankruptcy, creditors’ rights, commercial workout and foreclosure disputes, and commercial litigation. You can contact Heather at 561-804-4419 or email@example.com.