What Is an Amended Proof of Claim in a Chapter 13 Bankruptcy?

Understanding an amended proof of claim form is important

A proof of claim form is the document used by a creditor to advise the court of money owed by a debtor in a Chapter 13 bankruptcy. Only by filing a proof of claim is a creditor able to attempt to obtain payment of money due through a Chapter 13 plan. The proof of claim form must be accurate. There are situations in which an amended proof of claim needs to be presented.

Function

An amended proof of claim form keeps the bankruptcy court and bankruptcy trustee abreast of the actual amount a creditor desires to obtain through the Chapter 13 plan.

Time Frame

An amended proof of claim form can be filed before the Chapter 13 plan is put into effect. There are limited instances in which an amended proof of claim form can be filed after that time. For example, if the actions of the debtor prevented a full accounting of what is due.

Effects

The effect of an amended proof of claim form is to ensure accuracy in regard to the debtor's overall liability and to better ensure a creditor is able to obtain full compensation.

Considerations

A creditor cannot continue to submit amended proof of claim forms. A timely amended will not be questioned by the court. Multiple amendments can be construed to be an abuse of bankruptcy procedures.

Warning

A creditor due a larger amount of money from a debtor (an amount over $5,000) should consider hiring a lawyer for representation. A skilled bankruptcy attorney can best protect a creditor's interests during a bankruptcy case, including preparing an amended proof of claim form.

References

• Cornell Law School: Bankruptcy Overview
• "The Glannon Guide to Bankruptcy: Guide to Bankruptcy;" Nathalie Martin; 2006
• U.S. Bankruptcy Code

Resources

• American Bar Association: Bankruptcy & Insolvency Litigation Committee