Bankruptcy Claims


A bankruptcy claim is a claim filed by the debtor (most common) or on behalf of creditors (less common) against an individual or organization, in an effort to recoup a portion of what they are owed, when the individual or organization is legally declared as being unable to or having an impaired ability to pay its creditors.

All of the debtor's assets are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt. Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations incurred prior to filing for bankruptcy.