Filing for bankruptcy can be a confusing and lengthy process, but thanks to your Dallas bankruptcy attorney it does not have to be. One of the things you will likely want to discuss with your bankruptcy attorney concerns the type of claims you will be filing.
What’s the Difference?
When you and your lawyer go through the initial paperwork required when filing for bankruptcy, you will need to provide information on the amount and type of debts you have. Three types of claims usually exist when filing for bankruptcy: contingent, unliquidated, and disputed.
Contingent debts are, as the name suggests, contingent or dependent on some future event occurring. This could be some sort of loan that you may have cosigned that could default in the future. As long as the loan never defaults, you will not owe this debt. But because it is still up in the air, the claim must be filed. As your bankruptcy attorney will remind you, just because you file a claim it does not mean you are admitting you owe the debt. You are simply stating that this could be a debt you owe and you are legally covering yourself when filing for bankruptcy.
The second type of claim is called unliquidated. This essentially means there is an existing debt, but the amount of money involved is still to be determined. It is considered unliquidated because nothing has been collected and the court cannot be sure how to deal with it until a more concrete figure is determined.
The third type of claim is called disputed. Disputed claims occur when you do not agree with your creditor on the amount owed. Your Dallas bankruptcy attorney will advise you to list the full amount, regardless of what you think you owe. You can dispute the claim later, hence the name.