claim in bankruptcy


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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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How Can Landlord Maximize Allowed Claim in Bankruptcy Case?
15, 2002 it sold its claim in bankruptcy against Enron Corporation and its subsidiaries (NYSE:ENE) for net proceeds of $9.