Proof of Claim

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?

Under § 507, domestic support obligations such as child support generally come before ordinary costs of running the bankruptcy case, except for certain trustee expenses. The list below groups types of claims rather than showing their payment order:

1. Secured claims: Paid from the collateral securing the debt (mortgage paid from home proceeds, car loan from vehicle proceeds)
2. Administrative expenses: Costs of administering the bankruptcy case, including trustee fees and attorney fees
3. Domestic support obligations: Child support and alimony arrears
4. Employee wages: Wages earned within 180 days before filing, up to $17,150 per employee
5. Tax claims: Recent income, property, and employment tax debts
6. 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 properly filed proof of claim is evidence of the claimed overdue amount, which can be challenged. The amount the plan must pay to catch up depends on the underlying agreement and applicable law outside bankruptcy. 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.