Frequently Asked Questions
CAUTION - The following general information is provided as a convenience and for common knowledge purposes only. DLS Claims Administration, LLC is not in the business of offering legal, accounting, or other professional services and does not warrant or take responsibility for either the accuracy or relevance of the general information provided. If you should have specific questions regarding bankruptcy law and procedures, please contact an attorney for legal advice.
1. What is a Chapter 11 bankruptcy?
Chapter 11 is just one of the categories of bankruptcy under Title 11 of the United States Code which is also referred to as the Bankruptcy Code. Chapter 11 is generally filed by a business in order to reorganize its finances. A Chapter 11 starts when a business files a bankruptcy petition with a United States Bankruptcy Court. A business that files for Chapter 11 is known as the Debtor. A person or company that is owed money from the Debtor is known as a Creditor.
2. I am a creditor. Can I contact the business to demand payment?
No. When a business files for bankruptcy, the law requires that all creditors stop asking the business to pay them. If a creditor continues to contact the debtor for payment, the creditor could hear from the Bankruptcy Court.
3. I am a creditor. If I can't contact the business to demand payment, how do I get paid?
During the bankruptcy process, the business will generally send out notices to all of the creditors informing them about the bankruptcy filing. At some point, the business will generally send out a form called a "Proof of Claim". Creditors complete the form providing information about the amount they are owed from the business. Creditors then need to send the completed form either to the Bankruptcy Court or the claims agent hired to process the claims. Filing a Proof of Claim does not necessarily mean you will receive any payment on your claim amount.
4. After the business files for bankruptcy, how long will it take before the Proof of Claim form is sent?
Every bankruptcy case is different and it is impossible to know when the Proof of Claim form will be sent. If you are not sure that you will receive a Proof of Claim form, you can download a claim form from the U.S. Bankruptcy Court website at http://www.uscourts.gov/forms/bankruptcy-forms#official. PLEASE NOTE: the Proof of Claim Form and its form number was revised on December 1, 2015. It is now known as Form B 410.
5. What information is required on the Proof of Claim form?
A page of instructions and definitions will be included when the form is sent to you. Follow the instructions and if you have problems, contact an attorney for legal advice. DLS Claims Administration, LLC cannot provide you assistance in completing the claim form.
6. When do I file the Proof of Claim form?
When the Proof of Claim form is mailed to creditors it will include a notice detailing where the form must be sent and the deadline to file the form. The last day a Proof of Claim form can be filed is called the "Bar Date". If you file your form after the Bar Date, your claim may not be allowed.
7. Will I receive full payment for what I am owed?
Every bankruptcy case is different. In most cases, creditors will receive a percentage of what they are owed. In some cases, creditors may receive nothing.
8. When do creditors receive payment on their claim amount?
Again, every bankruptcy case is different. In the event payments are made, it is impossible to know when they will be sent. Bankruptcy cases may take many, many months or years to resolve.
9. What is a claims agent?
If one is hired, a claims agent is simply a company that performs the mass mailing of notices to creditors on behalf of the bankrupt business. The claims agent is also the company to whom Proof of Claim forms are sent for processing.
10. Can I fax my Proof of Claim form?
No. Proof of Claim forms will not be accepted by fax.
11. How can a creditor confirm that you received a Proof of Claim form?
The best way is to include a copy of the Proof of Claim form you are sending and provide a self-addressed stamped envelope and a date-stamped copy will be returned to you. Also, after your form is filed, an acknowledgement notice will be sent to you. Finally, you can call us at 888-781-2213.
12. What is the Holiday Schedule for DLS Claims?
DLS Claims Administration, LLC follows the Federal Holiday schedule to ensure consistency with the United States Bankruptcy Court system. For a listing of the applicable dates in 2016, please click here.