Creditors Beware: Do Proof Of Claim Right Or You Are Out
February 26, 2014, 1:23 PM EST
Law360, New York (February 26, 2014, 1:23 PM EST) -- Recent developments in the bankruptcy arena have placed a greater burden on claimants. Creditors are now required to make additional disclosures in their proof-of-claim forms, and courts are under no obligation to recognize late-filed claims. Proposed changes to the Bankruptcy Rules, including an amendment slashing the time to file a proof of claim, highlight the need for creditors to exercise extra vigilance.
Since 2011, the proof-of-claim form creditors file to evidence their claims in bankruptcy has undergone a significant makeover. The result is increased...