What Is a Claim in Bankruptcy?
What Is a Claim in Bankruptcy?
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Understanding Secured, Unsecured & Priority Claims in Bankruptcy
When you file bankruptcy, each creditor (the person or company to which you owe money) has a claim against your bankruptcy estate. If there's any money in your estate, the bankruptcy trustee will use it to pay the creditors' claims. To get paid, each creditor must file a proof of claim form indicating how much you owe and the type of debt.
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Filing a Proof of Claim for a Creditor in Bankruptcy
If you file for bankruptcy, most of your creditors will file a proof of claim -- a form that provides information about your debt -- in order to get paid. Sometimes a creditor doesn't file a proof of claim. In rare instances, you might want to file a proof of claim on that creditor's behalf. Here's why.
