Examination of claims (rejected claims)
At Sundgaard, we have extensive experience with all aspects of insolvency, bankruptcy and financial distress. We are qualified to help you or your business manage any financial challenges.
In bankruptcy proceedings, one of the trustees many tasks is to review the filed claims. This called examination of claims.
The examination of claims is only relevant if a given creditor class will receive dividends. If there is no chance of dividends, there should be no examination of claims.
The examination consist of the trustees review of the claims. The claims that are properly supported by documentation and are valid will be approved. Other claims will be rejected.
Afterwards the trustee will hold a hearing concerning the findings and conclusions. The hearing is at the trustees office and will be announced no later than two weeks before the hearing.
Any creditor can make a formal protest against the trustees conclusion. Based on the protest the parties will usually discuss further review, however if the trustee maintains a rejection, the creditor can file litigation with the Bankruptcy Court no later than four weeks after the formal hearing.
Litigation regarding rejected claims is a very specialized form of litigation – which is also shown by the unusual forum.
It is important that you as a creditor is aware of these deadlines. If not, you might lose all rights to defend your claim.