Proof of claim (bankruptcy)

You meet a proof of claim when a customer, supplier or other party to a deal goes bankrupt while owing you money, for example a buyer who paid a deposit to a seller that later became bankrupt. The Office of the Superintendent of Bankruptcy tells creditors that to recover money owed they must complete and submit one to the Licensed Insolvency Trustee. See what a bankrupt seller’s trustee can do to a purchase contract.

What the law and the regulator say

Section 124(1) of the Bankruptcy and Insolvency Act says every creditor shall prove the claim, and a creditor who does not is not entitled to share in any distribution. The Office of the Superintendent of Bankruptcy says the trustee examines the proof of claim before the first meeting of creditors and decides whether the claim is accepted or disallowed, in whole or in part. It adds that a secured creditor does not have to file one unless the trustee asks, or unless it wants to vote at the meeting and receive a dividend on the unsecured part of its claim.

What to check

• Whether you received the form from the trustee, and which trustee holds the file
• Whether your claim is secured, unsecured or both
• Which documents verify the amount, since the statement must be proved