Document Type
Research Memorandum
Publication Date
2018
Abstract
(Excerpt)
According to title 11 of the United States Code (the “Bankruptcy Code) and the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”), a debtor must file schedules of the debtor’s assets and liabilities. A debtor’s schedules would include a list of all known claims against the debtor and list the claims as disputed, contingent or unliquidated.
If an entity believes they have a claim against the debtor that the debtor has not included on a schedule, or the claim is disputed, contingent, or unliquidated, that party can file a proof of claim. A proof of claim in a bankruptcy case is the creditor’s statement as to the amount and character of their claim. A claimant will file the claim for purposes of distributions and voting on the reorganization plan.
There are certain situations when a claimant must file multiple proofs of claim and there are certain situations when a creditor should not. Part I of this article deals primarily with the procedural nature of filing a proof of claim. Part II examines who has the burden of proof when a claimant files a proof of claim. Part III concludes by analyzing whether a claimant should file a proof of claim against multiple debtors in a bankruptcy proceeding for affiliated companies.