United States: Chapter 11 Claims – Am I Disputed, Unliquidated, Contingent Or Forgotten?

In my May 26th post, I raised several questions that unsecured creditors in any Chapter 11 case should know the answers to and take action where appropriate. In my prior posts, I have already addressed " first-day motions" and creditors' meetings. Let's move on to three more questions about claims.

The answers to these three questions are VERY important. Why? You may not be eligible to receive any money from the debtor if you do not know the answers and act accordingly!

1) Is my claim properly listed on the debtor's Schedules?

This question is simple to answer. Peruse the debtor's Schedules filed with the Court and see if the debtor has listed you and whether the amount is correct. If the answer is NO, you need to file a proof of claim before the deadline set by the Court.

2) Has the debtor listed my claim as disputed, unliquidated or contingent?

The answer to this question is also simple. Look at the box where your claim is listed (if it is listed) on the Schedules. There is a section that says...

If one of these boxes is checked, the answer is YES and you need to file a proof of claim before the deadline set by the Court.

3) When is the deadline to file a proof of claim?

The clerk of the court (or in some instances the Debtor), send a notice out to all creditors LISTED on the debtor's Schedules which will set forth the deadline for filing a proof of claim. If you are not listed as a creditor and do not receive the notice, but are aware of the bankruptcy, you can find out the deadline from looking at the Court docket.

If you are not listed, your claim is not properly listed, or your claim is listed as contingent, unliquidated, or disputed, you MUST file a proof of claim in order to have your claim accurately allowed in the Chapter 11 case.

DO NOT miss the deadline to file a proof of claim! There are very few acceptable excuses for late-filed claims and more likely than not, your late-filed claim will be DISALLOWED.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.