Knowledge Base

What is a basis of objection?

Category: Bankruptcy 101

A Proof of Claim will stand if no one objects. If, however, an objection gets filed, the burden shifts to the objecting party to prove to the court that the Claim is invalid and should not be paid. A Claim remains valid even after an Objection. It is valid until the Court rules on the objection to determine if the Claim is Allowed or Disallowed.