Proof of Claims and Interests

Proof of Claims and Interests is a formal process in bankruptcy where creditors and shareholders can submit their financial claims against a debtor. A "proof of claim" document details how much money is owed to a creditor, while "proof of interest" refers to a shareholder's stake in the company. These documents must be filed with the court to ensure that the claims are recognized and considered in the bankruptcy proceedings. This process helps determine how available assets will be distributed among creditors and shareholders as part of the debtor's financial restructuring or liquidation.