What Is Proof of Claim?
A proof of claim is a formal document filed by a creditor in a bankruptcy case asserting the right to receive payment from the bankruptcy estate. It details the amount owed, the basis for the claim, and whether the claim is secured, unsecured, or entitled to priority. Without filing a proof of claim, a creditor generally cannot receive any distribution from the estate.
Key Facts
- Creditors must file proofs of claim using Official Form 410 with supporting documentation — the deadline is typically 70 days after the petition date in Chapter 7 cases and 70 days in Chapter 13 cases (90 days for government units)
- In most Chapter 7 no-asset cases, the trustee files a 'no distribution' notice and creditors are not required to file proofs of claim — only when the trustee identifies assets for distribution will creditors be notified to file
- Claims are classified by priority: secured claims (backed by collateral), priority unsecured claims (taxes, child support, employee wages), and general unsecured claims (credit cards, medical bills) — payment follows this priority order
- The debtor, trustee, or any party in interest can object to a proof of claim under § 502(b) if the amount is incorrect, the debt is unenforceable, or the claim is otherwise invalid — objections are resolved by the bankruptcy judge
- If a creditor misses the filing deadline (the 'bar date'), the claim is generally disallowed and the creditor receives nothing from the estate, even if the underlying debt is legitimate
Live Data
What Must a Proof of Claim Include?
Official Form 410 (the standard proof of claim form) requires:
- Creditor identification: Name, address, contact information, and last four digits of the debtor's account number
- Amount of claim: The total amount owed as of the petition date, including principal, interest, fees, and any other charges
- Basis for claim: The type of debt (credit card, mortgage, medical, tax, etc.) and the underlying agreement or transaction
- Security status: Whether the claim is secured (by real or personal property), unsecured with priority, or general unsecured
- Supporting documentation: Copies of contracts, promissory notes, account statements, or other evidence supporting the claim amount
How Are Claims Prioritized?
The Bankruptcy Code establishes a strict priority system for claim distribution under § 507:
- Secured claims: Paid from the collateral securing the debt (mortgage paid from home proceeds, car loan from vehicle proceeds)
- Administrative expenses: Costs of administering the bankruptcy case, including trustee fees and attorney fees
- Domestic support obligations: Child support and alimony arrears
- Employee wages: Wages earned within 180 days before filing, up to $15,150 per employee
- Tax claims: Recent income, property, and employment tax debts
- General unsecured claims: All remaining claims — credit cards, medical bills, personal loans — share pro rata in any remaining funds
In most consumer Chapter 7 cases, there are no assets to distribute, so the priority system is academic. In Chapter 13, the plan must pay priority claims in full.
What If a Claim Is Wrong?
Debtors should carefully review every proof of claim filed in their case. Common problems include:
- Inflated amounts: Creditors claiming more than is actually owed, often by including unauthorized fees or miscalculated interest
- Duplicate claims: The same debt filed by both the original creditor and a debt buyer
- Time-barred debts: Claims based on debts where the statute of limitations has expired
- Improperly secured claims: A creditor claiming secured status without a valid lien
Filing a claim objection under § 502(b) can reduce the amount of the claim or eliminate it entirely. In Chapter 13, claim objections can meaningfully reduce the debtor's total plan payments.
Why Proof of Claim Filing Matters for Homeowners
In Chapter 13, the mortgage servicer's proof of claim establishes exactly how much the debtor owes in arrears — and therefore how much the plan must cure. An incorrect arrearage amount can result in higher plan payments. Debtors should compare the servicer's claimed arrearage against their own records and file an objection if the numbers do not match. Mortgage servicer errors in proof of claim filings have been a documented pattern, with CFPB enforcement actions addressing systemic miscalculations.
Frequently Asked Questions
What happens if a creditor does not file a proof of claim?
In a Chapter 7 asset case, the creditor receives no distribution from the estate. In Chapter 13, the debtor or trustee can file a proof of claim on behalf of the creditor (under Rule 3004), but if no one files, the creditor gets nothing. The underlying debt may still be nondischargeable depending on its type.
Can I object to a creditor's proof of claim?
Yes. The debtor, trustee, or any party in interest can object. Common objections include incorrect amounts, expired statutes of limitation, lack of documentation, or improper secured status. The court holds a hearing and decides whether to allow, reduce, or disallow the claim.
What is the bar date for filing proofs of claim?
The bar date is the deadline for filing proofs of claim. In Chapter 7 and Chapter 13, it is typically 70 days after the petition date. Government units (IRS, state tax agencies) get 180 days. Missing the bar date generally means the claim is disallowed.
Do I need to worry about proofs of claim in my Chapter 7 case?
Usually not. About 95% of consumer Chapter 7 cases are no-asset cases where no distribution is made. Creditors are told not to file proofs of claim unless notified by the trustee. If the trustee does find assets, creditors will be given a deadline to file.
Can a proof of claim be amended?
Yes. A creditor can amend a proof of claim at any time before the bar date without restriction. After the bar date, amendments are generally allowed if they do not materially change the nature or amount of the claim. Courts evaluate late amendments on a case-by-case basis.