What we generally describe as “debts” are more specifically called “claims” from the creditors perspective in the bankruptcy world. And it’s very important to understand what is covered under the category of “claims” to ensure that you’ve filled out your paperwork accurately and completely – key to a successful bankruptcy case.
What Is A Claim?
So what constitutes a claim? The bankruptcy code provides a definition of the term:
“The term “claim” means –
– right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured; or
– right to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured, or unsecured.”
When In Doubt, Disclose Even Disputed Claims
So what does this all really mean? You must keep your mind wide open when thinking about all claims against you.
The obvious ones are credit cards, car loans, student loans, mortgages, and taxes, but what about other types of claims? What about claims that you dispute or that aren’t in writing? Maybe a friend or family member believes you owe them for having helped you out in some way but you disagree. Or perhaps you entered into a verbal contract that has been broken (or not completed) but no lawsuit has been filed. Could these scenarios give rise to claims against you?
One trustworthy motto to remember at a time like this is – “when in doubt, disclose”.
If you’re not sure whether or not another person or entity has a “claim” against you, disclose it to your attorney. He or she will ask you questions and give you guidance on how it may be treated in your case. And by listing the debt, you’re following the rule, which will allow you to discharge it, if it’s a dischargeable debt.
Experienced St. Louis Bankruptcy Lawyer
If you need help with your debt problems, please feel free to call me, Attorney Nancy Martin, today at (636)536-5355 or contact me online. We’ll talk about how a Chapter 7 or Chapter 13 bankruptcy may help you eliminate your debts and give you a fresh start.
For more posts on the letter “C” in the Bankruptcy Alphabet, please check out the posts below:
[learn_more caption=”St. Louis Bankruptcy Attorney” state=”open”] Nancy Martin is a St. Louis, Missouri attorney and consumer bankruptcy lawyer who helps people file Chapter 7 and Chapter 13 Bankruptcy. To find out more about bankruptcy and other debt relief alternatives, contact us online or by phone at (636) 536-5355. The office is located at 150 North Meramec Avenue, Suite 400, St. Louis, Missouri 63105.
We help people in St. Louis, St. Charles, Chesterfield, Ballwin, Creve Coeur, Maryland Heights, Ladue, Manchester, Kirkwood, Webster Groves, Wildwood, Bridgeton, Fenton, Eureka, Ellisville, Des Peres, Clarkson Valley, and Frontenac. This includes the municipalities within St. Louis County, St. Charles County, Jefferson County, Franklin County, Warren County, and Lincoln County.[/learn_more]