Dictionary

  • Proof of debt (in the context of bankruptcy and company liquidation)

    A document lodged by a creditor with the trustee in bankruptcy, setting out particulars of a debt owed by a bankrupt, specifying how the debt can be substantiated and stating whether or not the creditor is a secured creditor.

    It is not necessary to lodge a proof of debt unless required by the trustee. Where dividends become payable in an estate, the trustee will ask creditors to file a claim and provide evidence at that time.

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