Creditor: A person, corporation, or other entity to whom a
debtor owes a debt that was incurred on or before the date the
debtor filed for bankruptcy. 11 U.S.C. §101 (10).
Debtor: A person, corporation, or other entity who is in
bankruptcy. Use the debtor’s name and case number as shown
in the bankruptcy notice you received. 11 U.S.C. § 101 (13).
Evidence of perfection: Evidence of perfection of a security
interest may include documents showing that a security
interest has been filed or recorded, such as a mortgage, lien,
certificate of title, or financing statement.
Information that is entitled to privacy: A Proof of Claim
form and any attached documents must show only the last 4
digits of any social security number, an individual’s tax
identification number, or a financial account number, only the
initials of a minor’s name, and only the year of any person’s
date of birth. If a claim is based on delivering health care
goods or services, limit the disclosure of the goods or services
to avoid embarrassment or disclosure of confidential health
care information. You may later be required to give more
information if the trustee or someone else in interest objects to
the claim.
Priority claim: A claim within a category of unsecured
claims that is entitled to priority under 11 U.S.C. §507(a).
These claims are paid from the available money or
property in a bankruptcy case before other unsecured
claims are paid. Common priority unsecured claims
include alimony, child support, taxes, and certain unpaid
wages.
Proof of claim: A form that shows the amount of debt the
debtor owed to a creditor on the date of the bankruptcy filing.
The form must be filed in the district where the case is
pending.
Redaction of information: Masking, editing out, or deleting
certain information to protect privacy. Filers must redact or
leave out information entitled to
privacy on the Proof of
Claim form and any attached documents.
Secured claim under 11 U.S.C. §506(a): A claim backed by
a lien on particular property of the debtor. A claim is secured
to the extent that a creditor has the right to be paid from the
property before other creditors are paid. The amount of a
secured claim usually cannot be more than the value of the
particular property on which the creditor has a lien. Any
amount owed to a creditor that is more than the value of the
property normally may be an unsecured claim. But exceptions
exist; for example, see 11 U.S.C. § 1322(b) and the final
sentence of 1325(a).
Examples of liens on property include a mortgage on real
estate or a security interest in a car. A lien may be voluntarily
granted by a debtor or may be obtained through a court
proceeding. In some states, a court judgment may be a lien.
Setoff: Occurs when a creditor pays itself with money
belonging to the debtor that it is holding, or by canceling a
debt it owes to the debtor.
Uniform claim identifier: An optional 24-character identifier
that some creditors use to facilitate electronic payment.
Unsecured claim: A claim that does not meet the
requirements of a secured claim. A claim may be unsecured in
part to the extent that the amount of the claim is more than the
value of the property on which a creditor has a lien.
Offers to purchase a claim
Certain entities purchase claims for an amount that is less than
the face value of the claims. These entities may contact
creditors offering to purchase their claims. Some written
communications from these entities may easily be confused
with official court documentation or communications from the
debtor. These entities do not represent the bankruptcy court,
the bankruptcy trustee, or the debtor. A creditor has no
obligation to sell its claim. However, if a creditor decides to
sell its claim, any transfer of that claim is subject to
Bankruptcy Rule 3001(e), any provisions of the Bankruptcy
Code (11 U.S.C. § 101 et seq.) that apply, and any orders of
the bankruptcy court that apply.
Do not file these instructions with your form.
Case 20-12689-MFW Doc 18 Filed 01/15/21 Page 106 of 106