Should You File Proof Of Claim For a Creditor?

Most individuals that are in financial difficulty will often do their best to avoid the creditors. When the question comes up in a bankruptcy whether you should file a proof a claim for a creditor it might seem a little surprising to you.

In the majority of cases it is the creditors that will file their own proof of claim. There are times though when the debtor should actually file the proof of claim. The reason being is that if the proof of claim has not been filed in the bankruptcy then the bankruptcy trustee cannot deal with it.

Some creditors tend to stall from filing their claim perhaps thinking that they will be able to go after the debtor once the bankruptcy has been completed. It is your responsibility as a debtor to ensure that all of your debts and obligations are going to be handled in your bankruptcy to avoid this.

You want to make sure that the creditors that are holding non-dischargeable claims have a proof of claim included in your bankruptcy. You want to make sure that they are going to receive a payment through your bankruptcy so this doesn’t come back to haunt you after your bankruptcy has been completed.

You have to be particularly careful with the secured debt creditors. Secured creditors don’t have to file a proof of claim due to the fact that their lien is enough of a claim. There are cases though where the bankruptcy trustee may not give funds out to the secured creditors who have not filed their claim. In this case you want to make sure that the proof of claim has been filed so that you don’t end up having your car seized or your home repossessed. The best step you can take is making sure that you use an experienced bankruptcy attorney to assist you through the entire bankruptcy process.