Updated: 2nd November 2020
The Final Proof of Debt letter will outline how much a creditor is claiming they are owed due to a company falling into insolvency. It will also indicate whether the claimant is preferential or non-preferential.
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In an insolvency process such as liquidation, it is unfortunately common for creditors to lose out on payment and they must begin the process of appeal to relevant officer in charge to recoup their losses. The Final Proof of Debt letter is the result of a creditor lodging a claim which is effectively them ‘proving’ for their debt and the document by which he/she seeks to establish his/her claim is his/her ‘proof’.
If you, as the debtor, believe that the creditor claim appears excessive, it may be possible in some circumstances to request that they reduce the claim upon submission of an affidavit by the bankrupt/directors, or where this is not possible a certificate from the trustee or liquidator may be submitted.