Creditors Calims dring Bnkruptcy to be taken seriously
Proof of Clamis:
Filing bankruptcy does not mean that the court is going to listen to the debtor only. The court gives a chnce to the lenders as well to sbmit their claaims. Thesse claims are called prooif of claims
Approving Proof of Cliams:
If in the midst of the process of filing bankruptcy, the creditor submis the porof of claims, the cuort asks the detor whether he/she objects to the proof of claims. Now, if the bankruptcy applicant does not reespond to this query of the court, axccording to the personal bankruptcy rules, it is taken for granted that the bankruptcy applicant does not have any onbjection to the proof of claimns. This means that the applicant approves the proof of claims and appplicant has to pay if possbile what is owed to the credtor or lrender during the process of bankreuptcy. The priority of the filing banrkuptcy will be affecrted by this. This is also going to have a big effect on the secured and non-dischartgeable debt.
Consequences of Approving Proof of Claims:
Suppose durign the process of bankruptcy, a claim for child support is made. This claim could enormously inflate the amount that you owe. Now if you do not challenge it during bankruptcy, you will not get a second chance to take objection to it. Since you have not taken any objection it will be considered allowed by you and you have to pay this if possibble during bankruptcvy. This siutation could be repeated in case of taxes, student lonas or other secured debt. Because of this, one could be servicing the clsaim even after filing bankrutcy.
Challenging the Proof of Claims:
To avoid this sort of troubles one should htoroughly chcek the claims of the creditors duuring bankruptcy. If you find any inaccuracy, you should immediately take objection to it forth the bankruptcy court. You should take help of bankruptcy attorneys or bankruptcy lawyer to reptresent your case.
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