Claims Litigation: Understanding and Successfully Navigating Claim Objections in Bankruptcy Part I of II

By: Alexandra O. Caval, Staff Attorney for Chapter 13 Trustee Kathleen McCallister, Meridian, ID

The concepts of “claim” and “debt” are extremely important within the bankruptcy system for several reasons. First, “debts” or “liabilities on claims” are discharged in bankruptcy, and it is the discharge of the debts that gives a debtor the fresh start that he or she seeks. Second, “claims” are paid in a bankruptcy distribution. Third, while a bankruptcy case is pending, creditors are stayed from collecting on their “claims.” Lastly, in Chapter 11 cases, holders of “claims” are allowed to vote on a debtor . . .

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