Proof of Debt
A formal claim lodged by a creditor in an insolvency to establish the amount owed and to participate in any distribution.
Lodging a claim
A proof of debt is the formal way a creditor sets out and claims the amount it is owed in a liquidation, administration or bankruptcy. The creditor usually completes a prescribed form and provides supporting information so the external practitioner can assess the claim. Lodging a proof of debt is generally necessary before a creditor can share in any distribution of funds.
Assessment and dividends
The liquidator, administrator or trustee reviews each proof and may admit, reject or seek more detail before a dividend is paid. Keeping clear records of the debt makes this smoother. This is general information only and not legal advice. If your debtor is in an insolvency process, you can refer a debt and we can help you understand the steps.
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