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claim in bankruptcy

   Also found in: Wikipedia 0.01 sec.

claim in bankruptcy n. the written claim filed by persons or businesses owed money (creditors) by a party who files for bankruptcy (debtor) to benefit from the distribution if money becomes available. The known creditors receive written notice of the bankruptcy and will receive a creditor's claim form. They may also receive notice that the bankrupt party has no assets to distribute and that they should not file a claim until further notice (this is bad news for the creditor.) (See: bankruptcy, bankruptcy proceedings)



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Avilla Mercantile's unsecured claim in bankruptcy court was more than $133,000.
A taxpayer generally cannot claim a theft loss deduction for the amount of a claim in bankruptcy proceedings until the end of the proceedings, when the amount of recovery is certain.
Such a right is not a claim in bankruptcy and, as such, is not subject to discharge in bankruptcy.
 
 
 
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