How to Dispute Claims in Bankruptcy
When you file for personal bankruptcy, all of your creditors must be notified. Your creditors have the chance to object to your bankruptcy petition or question you at a meeting of creditors. To collect any money from your bankruptcy estate, they must file a proof of claim with the bankruptcy court. This claim includes any bills, account statements or interest amounts that you may owe the creditor. The claim must be approved by the bankruptcy court before it can be paid through your bankruptcy. It is possible to dispute the amount owed if your creditor has filed a proof of claim.
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Instructions
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Review the proof of claim the creditor has filed. The proof of claim is required to prove that you owe the creditor the amount of money claimed. It should include copies of any contracts, account statements or bills from the creditors service with you. It should also include a final claim amount, including any interest charges. Carefully review the proof of claim and all included documentation to see whether the claim matches up with what you believe you owe that creditor.
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Prepare an objection to the proof of claim to file with the bankruptcy court. This objection is a formal document that states you disagree with the proof of claim filed by the creditor. This objection should state the reasons you disagree with the proof of claim and what amount you believe you actually owe. Include any documentation you have that can prove your objection by providing any copies of statements that you may have. State the amount you believe the creditor should be paid.
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File your objection to proof of claim with the bankruptcy court. This is how you formally dispute a claim. The objection will be reviewed by your assigned bankruptcy trustee who will make a formal recommendation to the bankruptcy court. The creditor also has the chance to respond to your objection by providing additional proof of their claim. If the creditor responds to your objection, a formal hearing date will be set before the bankruptcy court judge. The judge will hear both sides of the dispute and make a final ruling. Once your case has been formally discharged from bankruptcy, even if the creditor has not been paid in full the amount of their claim, they may not initiate any collection proceedings against you, and the debt is considered fully discharged.
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