Who can File a Proof of Claim in a Florida Bankruptcy?
As a practicing bankruptcy attorney in the Middle District of Florida, issues about proof of claims arise quite frequently. What is a proof of claim? A proof of claim is a document filed with the bankruptcy court that shows what amounts debtors owe on debt. The claims are categorized as unsecured or secured or priority. Most credit cards and medical bills are unsecured claims. Debt like mortgages and auto loans are secured debt. Certain IRS debt and domestic support obligations are considered priority debt. Proof of claims have bar dates and if creditors fail to file their claim before the date expires, the creditor may lose its right to assert a claim. Proof of claims are important in chapter 7 cases if there are assets to be liquidated. Typically, the bankruptcy Trustee will make a finding of assets and give creditor notice that the proof of claims bar date will be extended in order for creditors to file proof of claims. Once it is known the debtor has assets available and subject to liquidation, creditors jump at the opportunity to file proof of claims. Unsecured claims will get a pro rata share of the distribution. Secured claims are allowed to get their full claim.
Who files proof of claims? Typically, creditors file proof of claims on their own behalf. However, many times, chapter 13 plans cannot be confirmed until certain proof of claims are filed. If the bar date on the claims pass, the debtor or the debtor's attorney or even the Trustee can file proof of claims on behalf of creditors. It would be noted in the proof of claim that a party other than the creditor is filing the proof of claim. However, if there were supposed to be arrears on a certain secured claim, the debtor's attorney can file a proof of claim on behalf of the creditor that shows no arrears and because the creditor waits to object (if at all) after the bar date, the objection is typically waived. This could save the debtor thousands of dollars. That is why creditors should file proof of claims in a timely manner.
Can the proof of claim be objected or disputed? In most circumstances, yes it can be, as long as the objection is timely. The amount owed on arrears, principal, or even objections to the wrong party claiming money is owed or no money being owed at all are common objections. If they are objections, the court will generally hold hearings to determine the issues and rule on those issues.
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Greg Gilbert
Keith Maynard
