What actions must a creditor take in a bankruptcy case?
The most common participation by a creditor in a consumer bankruptcy
case is to file a proof of claim and share in the liquidation of the
bankruptcy estate or under a proposed plan. The bankruptcy estate is
overseen by the trustee who distributes the bankruptcy estate to the
creditors after deducting trustee expenses, administrative costs, and
paying priority claims, such as those made by the government. In most
Chapter 7 bankruptcies there are few or no assets in the bankruptcy
estate.
A proof of claim that is properly filed in accordance
with the rules governing bankruptcy cases is evidence of the claim's
validity and amount and is deemed allowed unless the debtor or an
interested third party objects. Unsecured creditors will not receive a
distribution from the bankruptcy estate unless a proper proof of claim
has been filed. The proof of claim must be filed within 90 days of the
date when the meeting of creditors was first set (not including any
continuances).
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