Burr Alert: When is a Claim a "Claim"?

October 23, 2012


By Andrea Weed

The ability of a debtor to discharge future or unknown liabilities, or claims, in the bankruptcy process is an integral aspect of the "fresh start" envisioned by the Bankruptcy Code. However, determining when a claim is a "claim" under the Bankruptcy Code is not always simple. In light of the Code's broad definition of a "claim,"1 which includes even unmatured and unliquidated rights to payment, it is possible for unknown or future creditors to have a claim against the debtor to be administered in the bankruptcy case.2

These potential creditors – those who have been exposed to the debtor's harmful conduct or defective product but who have not suffered any resulting damages at the time of the bankruptcy case – may later find that their claims have been discharged without their knowledge, and that they cannot recover from the debtor post-bankruptcy. Accordingly, determining what constitutes a "claim" and when it arises is critical for both debtors and creditors alike. Courts across the country use different tests to make these determinations, focusing on factors such as when a claim accrues under applicable state law, the nature and timing of debtor's harmful conduct, or the nature and timing of the relationship between the debtor and the claimant giving rise to the injuries suffered.3

To read more about this topic, please see full article below

Download PDF



Legal Disclaimer:
No representation is made that the quality of services to be performed is greater than the quality of legal services performed by other lawyers.

Featured Attorneys

send article

TESTIMONIALS

  • “Tully Hazell has a keen business sense and understands how to talk with the commercial side of our business in a way that is understandable and not too laden with legalese. Tully has a strong knowledge of both our business and our industry which enables him to provide relevant responses to our questions. We also appreciate that we can always rely on Tully to provide timely responses to our requests.”

    -Chambers 2012

  • “Definitely have depth and expertise...They have a successful model and one that I’ve tried to imitate."

    -Chambers 2012

  • “I have utilized Burr and Forman for over 10 years. Amy is very responsive to our needs and thoroughly understands our business. Amy considers all solutions to our problems before rushing into a decision. She looks at all sides of the issue and can explain plainly what we are facing and how to remedy it. One of her greatest qualities is that she doesn’t overpromise on timelines."

    -Angelique Gisin, Director of Employee Administration, Tacala, LLC and Boom Foods, LLC

  • "...He has written a lot about Alabama employment law. Probably the leader of the group at Burr & Forman.”

    -Chambers 2012

  • “I work with a lot of lawyers in several states and Greg Harley is one of my favorites; he makes my job easy. He is very efficient, responsive and gets good results for us. I am very pleased.”

    -In-house counsel for a national banking institution