A Contingent claim in bankruptcy are debts for which a specific action or event must occur before the borrower becomes liable for the debt. In bankruptcy, your creditors treat your debts as loans because they are entitled to your money. This means that a particular creditor or debtor can initiate debt collection actions against you even after a bankruptcy decision has been received.
If you do not identify a specific creditor or debt when you file for bankruptcy, you may not be paid that debt. For example, even if you technically have no potential debt when you file for bankruptcy, you can meet your future obligations. This would be a conditional requirement because if you are determined to owe someone money, it becomes yet another debt that the bankruptcy court has to consider when considering your case.
If you do not disclose information about the loan, it cannot be written off (repaid) in your bankruptcy filing, even if it is a qualified debt. Even if you do not agree with the debt or its amount, it is necessary to declare it because if the bankruptcy procedure is completed and it is established that the disputed claim is legitimate, then it may be included in the list of overdue debts.
If you have a disputed debt, you should be careful about the amount the lender is asking you for, not what you think you owe. You can always state on your petition that this debt has been disputed and explain why you feel you do not owe or that you owe less than the amount requested by the alleged creditor. This type of claim is essentially a claim where you disagree with the debt itself or its total amount.
The same word suggests that this claim refers to debts on which the debtor and creditor cannot agree or the debtor does not recognize the debt. When it comes to this type of loan, it is not yet possible to establish the amount of the debt, as a certain factor must be pre-completed or terminated. The debtor may list the bankruptcy filing as unsettled if the debtor knows the debt exists, but the amount is still undetermined.
An unsettled claim is considered unsettled if the bankruptcy claim is filed prior to the issuance of the judgment and settled in the amount of the judgment is determined prior to the filing of the judgment. The claim is not considered settled if the exact amount of the debt has not yet been determined.« Back to Glossary