When you receive notice that an entity with which you have business dealings has filed a petition for bankruptcy relief, there are several steps you can take to ensure your interests as a creditor are protected and treated properly during the course of the bankruptcy case.  The following approach highlights key areas for a creditor to consider when preparing a proof of claim:

• The objective in preparing a proof of claim is to ensure the form is completed accurately, accompanied by sufficient documentation and timely filed with the appropriate entity.
• A creditor should review the notice and all instructions accompanying the proof of claim form.  The notice will contain information concerning, among other things, the bar date and the date by which a proof of claim must be submitted.  These instructions will indicate whether the claim is to be filed directly with the bankruptcy court or if a third-party claims agent has been appointed to accept the proof of claim.  Filing a proof of claim in advance of the bar date will provide time to correct any errors or to supply additional information.
• The individual charged with preparing a proof of claim should have knowledge of all material facts giving rise to the claim and should review the proof of claim for accuracy with counsel before it is filed. 
• A creditor should include all relevant dates and terms of the transactions comprising the claim and copies of all relevant documents.  If a creditor is not in possession of certain documents, the proof of claim should indicate who may be in possession. 
• A creditor should be as specific as possible as to the facts that gave rise to the claim.  By including sufficient details, the bankruptcy court will be more inclined to allow the claim in the first instance or to allow an amendment to the claim for additional damages. 
• A creditor may not have the necessary information or time to create a reconciliation of all accounts until after the passing of the bar date, the date by which a proof of claim must be filed.  Therefore, documentation submitted with the proof of claim form should state that the claim is an estimate, subject to amendment.
• Creditors must also consider, with the aid of counsel, whether some portion of their claim is entitled to priority status under the Bankruptcy Code.  If a claim does not fall within one of the categories listed on the “basis of claim” box on the proof of claim form, an explanation of the basis of the claim, together with the theory of damages, should be annexed as an exhibit.
• A completed proof of claim should be forwarded by certified mail, with a return receipt requested, together with a copy and a request that the bankruptcy clerk or claims agent return a time -stamped duplicate to the creditor.  In general, a proof of claim will not be accepted via e-mail or facsimile.
• A creditor should be diligent in obtaining any additional information regarding the claim subsequent to the filing.  Amendments to a claim, even subsequent to the bar date, are permitted to include additional claims that a creditor may have been unaware of at the time the original proof of claim was filed.
• Amendments to timely filed proofs of claim can be submitted to supplement or cure defects, to describe the original claim in greater detail or even to plead a new theory of recovery based upon the same set of facts as the original claim.  Amendments will only be allowed, however, when the original claim provides notice of the possible existence, nature and amount of the amended claim and the amendment will not unfairly prejudice the debtor.