Proof of Claim

Category: legal

A formal document filed by a creditor in a bankruptcy case asserting that the debtor owes them money.

The proof of claim is the "ticket to the line." If a vendor is owed $10,000 but fails to file a proof of claim before the court-ordered deadline (the Bar Date), they lose their right to receive any money from the bankruptcy distribution, completely wiping out their debt.

Common Examples

• Our accounting department filed a proof of claim with the bankruptcy court to recover the unpaid invoices for the Q3 data delivery.
• A proof of claim must include supporting documentation, such as contracts or unpaid invoices, to be accepted by the bankruptcy trustee.