Favorite Myths about the U.S. Bankruptcy Code
By Steven Kozack.
There are many widely held myths and misconceptions about the
U.S. Bankruptcy Code, including:
Myth: Trade creditors can ignore notices
from the Bankruptcy Court except for the Proof of Claim form.
Reality: Every document received is potentially important.
Missing a deadline, failing to perform a required task, or
simply failing to respond to an action brought against you
could result in the dismissal of your claim or other consequences.
Myth: Proof of Claim forms must be postmarked
before the Bar Date. Reality: Proof of Claim forms must be
received by the Bar Date, not postmarked by the Bar Date.
Myth: If you fail to file a Proof of Claim
by the Bar Date, don't bother to file at all. Reality: If
you fail to file by the Bar Date, there may be extenuating
circumstances that would cause your Claim to be accepted
by the Court without penalty.
Myth: General unsecured trade creditors
do not need to provide supporting documentation when they
file a Proof of Claim form. Reality: Creditors need to submit
documentation supporting the amount claimed as owed by the
Myth: Creditors can report only open debits
[and fail to report open credits] when filing their Proof
of Claim. Reality: Creditors are required to report the net
amount due; they cannot ignore or fail to report open credits.