What is a Proof of Claim in Philadelphia Bankruptcy Court?
When you file for bankruptcy, it’s important that all debts are accounted for in a repayment plan. That is why debtors should learn exactly what a proof of claim is and how it can impact a Philadelphia bankruptcy case.
After you file for bankruptcy in Philadelphia, creditors must file a proof of claim with the court. This document informs the court of any debt you owe to a specific creditor. If a creditor does not file a proof of claim in Philadelphia bankruptcy court, any debt owed to them will not be included in a repayment plan. To prevent this from happening and to exit bankruptcy without outstanding debt, hire an attorney. An experienced lawyer can file a proof of claim on behalf of a creditor so that all debts are accounted for in a repayment plan.
Our attorneys are here to help those throughout Philadelphia regain their financial stability through bankruptcy. For a free case evaluation with the Philadelphia bankruptcy lawyers at Young, Marr, Mallis & Deane, call today at (215) 701-6519.
What is a Proof of Claim in a Philadelphia Bankruptcy Case?
If you’ve recently filed for Chapter 13 bankruptcy in Philadelphia, the court will notify your creditors. Once a creditor is informed, they must file a proof of claim with the court. This form informs the court of the exact debt you owe at the time.
Bankruptcy is an opportunity for Philadelphia residents to regain their financial stability. It allows debtors to repay debts to creditors, whether through liquidation or repayment. Before you can move forward with repayment, a Philadelphia bankruptcy court must get verification of your debts from all creditors. That is why creditors must file a proof of claim at the onset of your bankruptcy case.
Using a proof of claim form, creditors must identify existing debt and provide any necessary supporting documentation. This might include invoices, contracts, receipts, or other documents that illustrate your debts to a specific creditor. This form and all supplemental documents are usually due within several weeks of a debtor filing for bankruptcy in Philadelphia.
While you may think that creditors are eager to recover payment for debts and successfully file a proof of claim by the deadline, that’s not always the case. In fact, sometimes creditors fail to file a proof of claim in time, leaving it up to a debtor. Should this happen during your case, it’s important to have an experienced Pennsylvania bankruptcy lawyer by your side. While a creditor’s failure to file a proof of claim can cause delays during the bankruptcy process, any issues can be avoided with help from a skilled attorney.
What Happens if a Creditor Doesn’t File a Proof of Claim in Philadelphia Bankruptcy Court?
If a creditor fails to file a proof of claim for your bankruptcy case in Philadelphia, any payments you make to erase debts will not be made toward that specific creditor. Depending on the state of your finances, a creditor failing to file a proof of claim can make it more difficult for you to improve your financial wellbeing.
It’s important for creditors to file a proof of claim form if they want to get paid. This can be confusing for debtors, who might believe that a bankruptcy court should keep track of all necessary payments and debts. In reality, the only person looking out for your interests will be your Philadelphia bankruptcy lawyer. If a creditor doesn’t file a proof of claim, the court won’t have a verified record of what you owe.
Now, if you only owe a debt to one or two creditors, you may be able to identify a failure to file a proof of claim yourself. However, keeping tabs on filed proof of claim forms may be more challenging if you have several creditors. During the stress of repayment, you may be unaware of which creditors are getting paid and which aren’t. This is why hiring a Lehigh County bankruptcy lawyer is important.
Your attorney can keep track of all creditors and identify those who haven’t filed a proof of claim form in Philadelphia bankruptcy court. Remember, if a creditor doesn’t file by the court’s deadline, that doesn’t mean your debt will go away. It just means your debt to that specific creditor will not be factored into your repayment plan. So, you may still have existing debt by the time you exit bankruptcy in Philadelphia.
Can a Debtor File a Proof of Claim in Philadelphia Bankruptcy Court?
When you file for bankruptcy in Philadelphia, it’s important to have an understanding of debts owed to creditors. If you realize that a creditor failed to file a proof of claim in Philadelphia bankruptcy court, your experienced attorney can help you file a proof of claim.
If you’ve filed for Chapter 13 bankruptcy in Philadelphia and noticed a creditor did not file a proof of claim by the court’s deadline, don’t worry. Such a failure does not mean you won’t have the opportunity to pay back a creditor through a repayment plan. When a creditor fails to uphold their end of the bargain and doesn’t file a proof of claim by the court’s deadline, a debtor can do so.
With help from your experienced Jenkintown bankruptcy lawyer, you can file a proof of claim with the court when a creditor fails to. This allows you to account for all debts in your Philadelphia bankruptcy case and includes all creditors in a repayment plan. That way, Philadelphia debtors can work to regain their financial stability sooner and exit bankruptcy without any outstanding debt.
Call Our Philadelphia Bankruptcy Attorneys Today
If you need to file for bankruptcy in Philadelphia, our attorneys can help. For a free case evaluation with the Bensalem bankruptcy lawyers at Young, Marr, Mallis & Deane, call today at (215) 701-6519.