What is Proof of Claim?

• A. An official affidavit from the creditor that supports their financial claim and is submitted to the Bankruptcy Court in a timely fashion.
• B. A certificate stating the municipality owes money.
• C. A court order halting all tax collection actions.
• D. A notice mailed to taxpayers about debt.

Answer: (A)

Proof of Claim is the formal document a creditor files in a bankruptcy case to establish that they are owed a specific amount by the debtor. It is typically a sworn statement or affidavit that sets out the basis for the claim, the amount owed, and attaches supporting documents. It must be filed with the bankruptcy court by the deadline set in the case; failing to file on time can lead to the claim being treated as late or disallowed, affecting the creditor’s ability to receive any distribution from the debtor’s estate.

The other options don’t fit because they describe different concepts: a certificate that the municipality owes money isn’t the bankruptcy filing used to participate in the case; a court order halting all tax collection actions resembles an injunction or automatic stay but isn’t the creditor’s claim itself; a notice mailed to taxpayers about debt is a collection notice, not a formal filing in bankruptcy.