Proof of Debt

A proof of debt is the formal claim submitted by a creditor to the liquidator, administrator, or trustee in bankruptcy to establish the existence and amount of their debt and to participate in any distribution from the insolvent estate. The form and requirements are set out in the Insolvency Rules 2016. A proof must include the amount claimed, the basis of the debt, and any supporting documentation.

In practice

Creditors must submit a proof of debt to be entitled to vote at creditors' meetings and to receive a dividend. The office-holder examines each proof and may admit it in whole, in part, or reject it. A creditor whose proof is rejected may appeal to the court. Proofs must be submitted by the deadline set by the office-holder. Late proofs may still be admitted but the creditor cannot disturb any distribution already made.