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"Creditors' claims against the estate" [2019] ELECD 2083; in Lubben, Stephen (ed), "American Business Bankruptcy" (Edward Elgar Publishing, 2019) 45

Book Title: American Business Bankruptcy

Editor(s): Lubben, Stephen

Publisher: Edward Elgar Publishing

Section: Chapter 4

Section Title: Creditors’ claims against the estate

Number of pages: 13

Abstract/Description:

The filing of a bankruptcy petition creates an estate and directs creditors to that estate as their source of recovery. Creditors can present their claims to the estate for payment. In particular, a creditor has to file a proof of claim, and work through the process of getting its claim “allowed.” Once allowed, the claim will entitle the creditor to participate in the bankruptcy process. Creditors with a lien, mortgage, or other interest in collateral are potentially treated as having two claims under the Bankruptcy Code: one secured claim up to the value of the collateral, and another unsecured claim for the remainder. Other creditors might be entitled to priority in payment.