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Simple English definitions for legal terms
proof of claim
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A quick definition of proof of claim:
Proof of claim: When someone owes you money and they file for bankruptcy, you can submit a written statement to show how much they owe you and why. This is called a proof of claim. It helps the court decide how much money the person owes to all their creditors.
A more thorough explanation:
Proof of claim is a written statement submitted by a creditor in a bankruptcy case to show the basis and amount of their claim.
For example, if a person owes money to a credit card company and files for bankruptcy, the credit card company can submit a proof of claim to the bankruptcy court to show how much money the person owes them.
Pl. proofs of claim.
- A hospital submits a proof of claim to a bankruptcy court to show how much money a patient owes for medical treatment.
- A landlord submits a proof of claim to a bankruptcy court to show how much rent a tenant owes.
- A supplier submits a proof of claim to a bankruptcy court to show how much money a business owes for goods or services.
These examples illustrate how different types of creditors can submit a proof of claim to a bankruptcy court to show the amount of money they are owed.