CAN I OBJECT A PROOF OF CLAIM?
Posted on 08 16,2014
When a creditor files a claim, it means that they wish to assert their right to receive pay out from a bankrupt estate. The bankruptcy court, the debtor, the trustee, and other creditors will be notified of this claim. While it is assumed that the debtor and trustee will likely object this claim, often times other creditors have taken action against claims as well in order to protect their payout.
WHO CAN FILE A CLAIM?
Whether you file Chapter 7 or Chapter 13 bankruptcy, any unsecured creditor will have to file proof of claim if they wish to receive any pay out after the bankruptcy process. They will only have 90 days to file this claim after the first meeting of the creditors. However, secured creditors do not have to file proofs of claims to be included in a bankruptcy case.
HOW TO OBJECT A BANKRUPTCY CLAIM
If you are a debtor or a trustee, you may be well-served to object a bankruptcy claim from certain unsecured creditors who are attempting to manipulate the situation. If a claim is not allowable or violates any type of law, it is crucial that you object it as soon as possible.
In most cases, a trustee will be the one who files an object to claims. They will need to submit a written objection through the correct form and content so that the court can review it.
The following details should be included:
- Clear description / identification of the claim
- Supportive facts for the objection
- Proof that the objection is filed in the correct court and signed by the right parties
- Details of the legal reasons for objection
If everything is submitted properly, you will likely receive a notice of a hearing at least 30 days prior to the date. A claim objection should be handled by an experienced bankruptcy lawyer, as it can be a complex and arduous litigation process. You can call our firm for more details on filing an objection bankruptcy claims!