Don't Sign Your Creditor-Client's Proof Of Claim

Law360, New York (November 9, 2013, 12:57 AM EST) -- Preparing a proof of claim is a relatively easy task. As one court has noted, the proof of claim form is not elaborately detailed and may take only five minutes to complete.[1] This simple task can result in extremely adverse consequences for a creditor and its counsel, if counsel, as opposed to the creditor-client, signs the proof of claim form. This problem is of relatively recent vintage, and arises out of an amendment to Official Form 10, the proof of claim form. In 2011, section 8 of the proof of claim form was revised to include a signature requirement which contains a declaration under penalty of perjury that the information provided "is true and correct to the best of my knowledge, information, and belief." The 2011 Advisory Committee Note to Official Form 10 provides that this revision was done "to impress upon the filer the duty of care that must be exercised in filing a proof of claim." However, the change in the signature block has more far reaching consequences, intended or otherwise....

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