The ABC Claims Process: How Creditors Submit and Prove Their Claims

After the assignee sends notice to creditors, each creditor must submit a formal claim to be eligible for distribution. Understanding how the claims process works helps both creditors and business owners manage expectations and participate effectively.

How to File a Claim

Creditors submit claims by completing the assignee’s proof of claim form and attaching supporting documentation — invoices, contracts, account statements, or any other evidence of the debt. The assignee reviews each claim, may request additional documentation, and either allows or disallows it. Disputed claims may require negotiation or, in some cases, litigation.

Claims submitted without supporting documentation are vulnerable to reduction or disallowance. An unsecured trade creditor who submits a claim for $50,000 without attaching the underlying invoices is giving the assignee reason to question the amount. Creditors who submit complete, documented claims are processed faster and have more leverage in any dispute over the claim amount.

The California ABC System gives business owners and creditors the exact tools, templates, and step-by-step guidance to navigate an Assignment for Benefit of Creditors — faster and cheaper than bankruptcy, without a federal court filing. Request your free evaluation here.