What is a Proof of Claim in Bankruptcy?

Bankruptcy is a complex process, involving various stakeholders, each with specific roles to play. One such important role is that of the creditor who files a ‘Proof of Claim’. So, what is a proof of claim in bankruptcy? Let’s explore.

Proof of Claim: An Overview

A ‘Proof of Claim’ is a form submitted by a creditor in a bankruptcy case to assert their claim against the debtor. It serves as an official declaration of the amount owed by the debtor to the creditor at the time of bankruptcy filing.

The Purpose of a Proof of Claim

The main purpose of filing a proof of claim in bankruptcy is to ensure that the creditor is included in the distribution of assets from the bankruptcy estate. This form provides the bankruptcy court, the debtor, and other stakeholders with a clear understanding of the claims against the debtor.

Filing a Proof of Claim: The Process

The process of filing a proof of claim differs based on jurisdiction. However, most jurisdictions require creditors to submit an official form, known as ‘Form 31’ in Canada. This form can be downloaded from the official website of the Superintendent of Bankruptcy Canada. Accompanying the form should be the supporting documents or vouchers that validate the debt.

Components of a Proof of Claim

A comprehensive proof of claim typically includes the following elements:

  1. Creditor’s Information: This includes the name and contact details of the creditor or its representative.
  2. Debtor’s Information: Details about the debtor, such as name and location, are required.
  3. Claim Details: The amount claimed and the basis for the claim need to be stated. This section might include details about the nature of the debt, the date it was incurred, and the amount.
  4. Documents in Support: This includes any supporting documentation that validates the claim, such as contracts, invoices, or promissory notes.
  5. Declaration: The creditor or its representative must certify the validity of the claim.

Types of Claims in Bankruptcy

Claims in bankruptcy can be classified into multiple categories:

  1. Unsecured Claim: This is a claim where the creditor does not hold any assets of the debtor as security for the debt.
  2. Secured Claim: In this type of claim, the creditor holds a security interest in the debtor’s property.
  3. Priority Claim: Certain unsecured claims are given priority over others in the distribution of the bankruptcy estate.
  4. Lease Disclaimer Claim: This is a claim made by a lessor for losses due to a lease being disclaimed in bankruptcy.
  5. Claims by Wage Earners, Farmers, Fishermen, and Aquaculturists: These are specific types of claims given special consideration in the Bankruptcy and Insolvency Act.

Claim Priority in Bankruptcy

In bankruptcy proceedings, not all creditors are treated equally. Certain classes of creditors are given priority over others. This priority is usually based on the type of debt and is laid out in Section 136 of the Bankruptcy and Insolvency Act.

What Happens After Filing a Proof of Claim?

Once the proof of claim is filed, the trustee reviews it and determines whether it should be accepted or objected. If accepted, the creditor is then eligible to receive a distribution from the bankruptcy estate, subject to the availability of assets and the priority of claims.

Potential Issues with Proof of Claim

Filing a proof of claim may not always be a smooth process. There might be disputes over the amount claimed or the validity of the claim. In such cases, the bankruptcy court may need to intervene to resolve the issue.

Penalties for False Claims

It’s important to note that making a false claim can have serious consequences. Under Subsection 201(1) of the Bankruptcy and Insolvency Act, severe penalties, including fines and imprisonment, can be imposed for making any false claim or statement.


Understanding what a proof of claim is in bankruptcy is vital for both debtors and creditors. While it gives creditors a chance to receive a portion of the debtor’s assets, it also helps debtors understand the claims against them. Accurately filing a proof of claim and understanding the process can make the complex bankruptcy procedure a bit more navigable.

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