What is a Proof of debt Form?
A form for creditors for detailing debts and supporting information.
Why proofs of debt are required?
Practitioners will encourage creditors to lodge a proof of debt so that the creditor can participate in a meeting of creditors (to be able to vote on resolutions) and so that they may share in a dividend. However, most practitioners will also encourage creditors to lodge proofs of debt as early as possible in the administration, as this provides the practitioner with information regarding the debts of the insolvent entity, which in turn assists with investigations and recoveries. Once a creditor has lodged a proof of debt they need not lodge another in that administration unless there is some change to the amount of debt claimed.
Which debts are provable?
The Corporations Act 2001 (section 553) defines provable debts as follows: all debts payable by, and all claims against, the company (present or future, certain or contingent, ascertained or sounding only in damages), being debts or claims the circumstances giving rise to which occurred before the relevant date, are admissible to proof against the company.
The definition in the Bankruptcy Act 1966 (section 82) defines provable debts as follows: all debts and liabilities, present or future, certain or contingent, to which a bankrupt was subject at the date of the bankruptcy, or to which he or she may become subject before his or her discharge by reason of an obligation incurred before the date of the bankruptcy, are provable in his or her bankruptcy.
What information should be included in a proof of debt?
It is your responsibility to prove to the Liquidator/Bankruptcy Trustee that you are owed the debt.
We therefore suggest the following:
- Answer all questions on the form.
- Calculate interest to the date of bankruptcy/Liquidation/Voluntary Administration; or the date the Personal Insolvency Agreement was executed by the Debtor(s).
- Total the amounts and check that your calculations are correct.
- Sign and date the Proof of debt form.
- Attach documentary evidence of your claim. Evidence may include copies of:
- Delivery dockets;
- Relevant contracts;
- Personal guarantees given by bankrupt/ debtors;
- Loan contracts; and
A Liquidator or Trustee may require you to verify the matters contained in your POD by way of a Statutory Declaration. If such a request is made and you fail to provide the Statutory Declaration, then the Liquidator or Trustee may disregard your POD.
Contact Insolvency Intel on 1300 265 753 or email us on email@example.com.