Knowledge Base

What are some terms general bankruptcy terms I should know?

Category: Bankruptcy 101

Creditor: A person and/or organization owed money by the bankrupt company.

Debtor: In the context of bankruptcy, the debtor is the bankrupt company.

Seller: Someone who is willing to sell their claim. Possibly you!

Buyer: A person and/or firm that wants to buy your bankruptcy claim.

Verified Buyers: XCLAIM verified distressed debt investors, who may want to purchase your claim.

Proof of Claim: A document filed by a creditor asserting how much money they are owed.

Claim: Usually used interchangeably with proof of claim.

Scheduled Claim: A claim made by the debtor outlining how much they owe each creditor according to their records.

Allowed: A claim that is approved by the courts.

Disallowed: A non-approved claim.

Amendment: A correction made to a proof of claim.

Amended claim: A proof of claim filed with a correction that supersedes the old claim. Keep in mind the original claim will not be deleted!