When TelexFree filed Chapter 11 bankruptcy last week, many thousands of investors and employees became very worried. They realized that their money may be lost forever, but very few know what steps they must take in order to protect themselves, and hopefully, recoup some or all of the money owed to them.
In most cases creditors should file a proof of claim when the debtor (here Telexfree) files a bankruptcy case. This is especially true where there are assets in the bankruptcy estate.
A proof of claim is a written declaration that notifies the bankruptcy court, the debtor, the trustee, and other interested parties that a creditor desires to assert its right to receive a distribution (pay out) from the bankruptcy estate.
Bankruptcy Courts commonly set a date by which time a creditor’s proof of claim must be filed. This date is called the “bar date” because failure to file a proof of claim on time may “bar” a creditor’s right to receive a distribution.
If for any reason the bankruptcy court does not set a official date for the filing of proofs of claim, the Federal Rules of Bankruptcy Procedure requires that in Chapter 11 cases, a creditor must file its proof of claim by the date on which the debtor must file its disclosure statement.
In Chapter 11 cases where the debtor has assets (as it appears that TelexFREE has), it is best to file your proof of claim as soon as possible after the bankruptcy case is filed. If the court sets a bar date, all creditors will receive a notice from the court. However this will only happen if the debtor lists you as a creditor. If they fail to list you and the Bar date passes, you will be out of luck, so file the proof of claim.
The creditor must set forth its correct name and address, as well as the amount of the debt as of the date on which the bankruptcy case was filed. The creditor also must designate whether the claim is secured or unsecured, show a calculation of interest and other fees and charges that are due, and attach copies of the documents that evidence the claim.
Besides filing out the proof of claim, it is good practice to attach an itemized calculation of the claim ,a list of exhibits, followed by copies of the promissory note, all amendments, agreement signed by the debtor.
Additionally, if it is uncertain whether some share of the claim may be entitled to priority status, the creditor should specify on the proof of claim that it reserves its right to amend the proof of claim to seek priority status.
In the TelexFree case, some creditors invested in the company while others, besides investing worked on company promotions and may have a claim for commissions. These claims are priority claims to be paid out first, before the general creditors.
Numerous creditors simply mail a proof of claim to the claims agent and/or court, enclosing an extra copy of the proof of claim, along with a pre-addressed, postage-paid envelope so that the claims agent can return a copy of the date-stamped proof of claim to the creditor. To avoid any confusion regarding the filing, a creditor should send their proof of claim by certified mail with return receipt requested.
The filing of a proof of claim is a fundamental step that must be commenced in a timely and attentive manner. By following the instructions above, a creditor can feel comfortable that he or she has done everything possible to make sure that they will receive a fair distribution of the money collected by the court.
WHERE TO FILE THE PROOF OF CLAIM
United States Bankruptcy Court, District of Nevada
Foley Federal Building
300 Las Vegas Boulevard South
Las Vegas, NV 89101
T: (702) 527-7000
http://www.nvb.uscourts.gov
Case Numbers: 14-12524, 14-12525, 14-12524
Any questions about this case call the U.S. Trustee:
United States Trustee
300 Las Vegas Boulevard
Suite 4300
Las Vegas, NV 89101
WHERE TO GET A FILLABLE PROOF OF CLAIM FORM TO FILE WITH THE BANKRUPTCY COURT?
You can get a sample of a Proof of Claim by going to http://www.wiwb.uscourts.gov/fillable_forms/ProofofClaim_B10.pdf ..
YOU DO NOT NEED TO HIRE A LAWYER TO DO FILE YOUR CLAIM.
ADDITIONAL RECOMMENDATION TO PROVE TELLEXFREE DEFRAUDED YOU.
Also I recommend everyone to file a Complaint for Fraud with the Bankruptcy Court:
Office of the United States Trustee
Special Investigations Unit
300 Las Vegas Blvd. South,
Suite 4300
Las Vegas, Nevada 89101
Upon receipt, your complaint will be reviewed promptly. If the information furnished establishes a reasonable belief that a criminal violation has occurred, the matter will be referred to the United States Attorney. If the United States Attorney deems the matter to hold prosecutorial merit, it will be referred to the appropriate law enforcement agency for investigation. A clearly written statement containing copies of any available documentation will expedite this process.
Submit the following information:
- The bankruptcy case name and file number, together with copies of any pertinent court filings.
- A chronological summary of the matter.
- A narrative of what occurred.
- Names, addresses and telephone numbers (to the extent available) of the subjects and witnesses known to you.
