What is a Proof of Claim?

A Proof of Claim is a document filed with the U.S. Bankruptcy Court by your creditors after you have filed bankruptcy.  The Proof of Claim indicates the amount of money you owe to that specific creditor and will include the principal owed on the debt plus any interest and fees.   The creditor will file documents that substantiate the amount owed including any amount you are behind on the loan at the time your bankruptcy was filed.  If it is a secured creditor, such as a mortgage company or auto finance company, they will also file documents proving they have a valid lien on your property.  For example, your mortgage company will file a copy of the Deed of Trust as proof of the valid lien.A Proof of Claim may be filed in a Chapter 7 bankruptcycase if it is an “asset case” or a bankruptcy where there are funds that can be paid to your creditors by the bankruptcy Trustee.  An asset case may occur when you decide to give up or surrender a house or car to the Trustee for him to sell for the benefit of your creditors.  This does not occur very often in a Chapter 7 case.A Proof of Claim is almost always filed in a Chapter 13 bankruptcy case, especially if the creditor wants to be paid!  The Chapter 13 Trustee uses the Proof of Claim to establish the amount to be paid to each creditor in your bankruptcy, and the claims may impact the amount of your monthly payments to the Trustee.  For example, if you believed you were $4,000 behind to your mortgage company when you filed bankruptcy but the mortgage company’s Proof of Claim provides evidence that you were really $8,000 behind on your mortgage payments, your payment to the Chapter 13 Trustee will probably increase.

Your creditors may file their Proof of Claim and supporting documents online at the U.S Bankruptcy Court’s website.