How to File a Proof of Claim in Any Consumer Bankruptcy Case
When a company like American Signature Furniture files for bankruptcy, you have to take steps to protect yourself, and that starts with the Proof of Claim. This guide details the essential procedure, documents, and the powerful consumer priority status of claims available under the Bankruptcy Code.
By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).
American Signature Furniture Files for Bankruptcy
The news of companies like American Signature Furniture filing for bankruptcy can be deeply unsettling, especially if you paid a deposit or paid in full for goods you haven’t received. That’s why the Proof of Claim is critical.
This means that you are now a creditor, and as a creditor, you must act to protect your funds. The way to do so is by filing an official Proof of Claim. This guide details the essential steps, documents, and legal protections that apply to consumers in any similar bankruptcy scenario. In this case, I focus on American Signature Furniture and its recent bankruptcy filing.
What is the Proof of Claim (Official Form 410)?
When a debtor, including a company, files for bankruptcy, the automatic stay stops most collection efforts, and all of their assets become part of the bankruptcy estate. To receive any payment from that estate, you, the creditor, must notify the court of the debt.
The Proof of Claim is the document used to make this notification. It must:
- Be filed using the Official Form 410.
- Be filed by the court-specified deadline (the Bar Date).
- Be supported by documentation (receipts, contracts, invoices).
If you fail to file this form on time, you effectively waive your right to recover any money from the bankruptcy case.
Navigating Official Form 410
The Proof of Claim is largely a self-explanatory form, but it must be properly completed to protect your financial interest.
| Section | Required Information | Key Takeaway |
| Part 1 | Debtor’s Name, Case Number, Court Name | Get this directly from the official bankruptcy notice you received. |
| Part 2 | Creditor Information, Claim Amount | State the exact amount owed as of the filing date (e.g., your $1,500 deposit). |
| Part 2, Item 8 | Basis of Claim | For consumers, this is typically “Deposit for goods not delivered,” “Goods sold,” or “Services not performed.” |
| Part 3 | Priority Status (Section 507) | This is critical for consumers. See Section 3 below. |
| Part 4 | Supporting Documents | Attach redacted copies of your sales contract, receipt, or any evidence of payment. Do not send originals. |
Professor’s Note: You must redact or leave out sensitive data like full Social Security Numbers (use only the last 4 digits) or full bank account numbers on the form and all attachments.
The Power of Priority Claims: 11 U.S.C. § 507(a)(7)
You are generally considered an unsecured creditor, meaning there is no asset attached to the debt. However, the Bankruptcy Code provides a crucial exception for consumers under Section 507(a)(7).
This section grants a special priority status to individual, unsecured claims arising from the deposit of money before the bankruptcy filing for the purchase, lease, or rental of property or services for personal, family, or household use.
The Consumer Deposit Cap on Unsecured Claims
While this priority elevates your claim above general unsecured claims (like those from large vendors), it is capped. The current maximum priority amount for a consumer deposit claim is $3,800 (this amount is adjusted periodically).
If your deposit was $1,500, the entire amount is covered by this priority. If your deposit was $5,000, $3,800 is given priority status, and the remaining $1,200 is treated as a general unsecured claim.
Caveat: Even with priority status, the final payment you receive depends entirely on the debtor’s liquidity (how many assets they have) and their total debt, including secured and unsecured debt. If the business starts liquidating, you may receive less than the full claim amount.
Where and How to File Your Claim
For the American Signature case and most large filings, electronic filing is the standard.
Online Filing: Claims are typically filed electronically using the court’s Case Management/Electronic Case Files (CM/ECF) system, which is accessed via PACER.gov (Public Access to Court Electronic Records). Many courts also have a simple, non-attorney portal for filing proofs of claim directly.
The Claims Administrator: Large Chapter 11 cases often appoint a Claims Administrator or a third-party professional firm, who is responsible for managing the claims process. You will receive official notice if one is appointed, and they will usually have a dedicated, free website where you can file your claim and track its status without needing a full PACER account.
Monitoring the Case: You can monitor the official docket or court filings on PACER.gov. The Trustee’s office or the Claims Administrator is your primary point of contact.
Do not delay. Your deadline is determined by the court and could arrive quickly. Review your official notices and file your Proof of Claim promptly to ensure your money is protected.
How to File a Proof of Claim in Any Consumer Bankruptcy Case
The news of companies like American Signature Furniture filing for bankruptcy can be deeply unsettling, especially if you paid a deposit or paid in full for goods you haven’t received.
This means that you are now a creditor and as a creditor, you must act to protect your funds. The way to do so is by filing an official Proof of Claim. This guide details the essential steps, documents, and legal protections that apply to consumers in any similar bankruptcy scenario. In this case, I focus on American Signature Furniture and their recent bankruptcy filing.
What is the Proof of Claim (Official Form 410)?
When a debtor, including a company, files for bankruptcy, an automatic stay stops most collection efforts, and all of their assets become part of the bankruptcy estate. To receive any payment from that estate, you, the creditor, must notify the court of the debt.
The Proof of Claim is the document used to make this notification. It must:
- Be filed using the Official Form 410.
- Be filed by the court-specified deadline (the Bar Date).
- Be supported by documentation (receipts, contracts, invoices).
If you fail to file this form on time, you effectively waive your right to recover any money from the bankruptcy case.
Navigating Official Form 410
The Proof of Claim is largely a self-explanatory form, but it must be properly completed to protect your financial interest.
| Section | Required Information | Key Takeaway |
| Part 1 | Debtor’s Name, Case Number, Court Name | Get this directly from the official bankruptcy notice you received. |
| Part 2 | Creditor Information, Claim Amount | State the exact amount owed as of the filing date (e.g., your $1,500 deposit). |
| Part 2, Item 8 | Basis of Claim | For consumers, this is typically “Deposit for goods not delivered,” “Goods sold,” or “Services not performed.” |
| Part 3 | Priority Status (Section 507) | This is critical for consumers. See Section 3 below. |
| Part 4 | Supporting Documents | Attach redacted copies of your sales contract, receipt, or any evidence of payment. Do not send originals. |
Professor’s Note: You must redact or leave out sensitive data like full Social Security Numbers (use only the last 4 digits) or full bank account numbers on the form and all attachments.
The Power of Priority Claims: 11 U.S.C. § 507(a)(7)
You are generally considered an unsecured creditor, meaning there is no asset attached to the debt. However, the Bankruptcy Code provides a crucial exception for consumers under Section 507(a)(7).
This section grants a special priority status to individual, unsecured claims arising from the deposit of money before the bankruptcy filing for the purchase, lease, or rental of property or services for personal, family, or household use.
The Consumer Deposit Cap on Unsecured Claims
While this priority elevates your claim above general unsecured claims (like those from large vendors), it is capped. The current maximum priority amount for a consumer deposit claim is $3,800 (this amount is adjusted periodically).
If your deposit was $1,500, the entire amount is covered by this priority. If your deposit was $5,000, $3,800 is given priority status, and the remaining $1,200 is treated as a general unsecured claim.
Caveat: Even with priority status, the final payment you receive depends entirely on the debtor’s liquidity (how many assets they have) and their total debt, including secured and unsecured debt. If the business starts liquidating, you may receive less than the full claim amount.
Where and How to File Your Claim
For the American Signature case and most large filings, electronic filing is the standard.
Online Filing: Claims are typically filed electronically using the court’s Case Management/Electronic Case Files (CM/ECF) system, which is accessed via PACER.gov (Public Access to Court Electronic Records). Many courts also have a simple, non-attorney portal for filing proofs of claim directly. To learn how to use PACER.gov, make sure to review this prior blog post and video.
The Claims Administrator: Large Chapter 11 cases often appoint a Claims Administrator or a third-party professional firm, who is responsible for managing the claims process. You will receive official notice if one is appointed, and they will usually have a dedicated, free website where you can file your claim and track its status without needing a full PACER account.
Monitoring the Case: You can monitor the official docket or court filings on PACER.gov. The Trustee’s office or the Claims Administrator is your primary point of contact.
Do not delay. Your deadline is determined by the court and could arrive quickly. Review your official notices and file your Proof of Claim promptly to ensure your money is protected.
Professor Hernandez is an attorney specializing in consumer finance and debt relief. He is the published author of Consumer Bankruptcy Law (Routledge Publishing) and teaches law and finance courses in both English and Spanish for an international university.
Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link. You can also listen to my podcast on Spotify.
You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.
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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.
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