When you file for bankruptcy, you fill out a large packet of forms in which you provide detailed information about your debts, property, and finances. On several of those forms, you must indicate whether a claim (essentially a debt) is contingent, unliquidated, or disputed.
Here’s what those terms mean.
You must list all of your debts on your bankruptcy papers. Debts are often referred to as claims (because the creditor has a claim to this money).
Often, the amount of the claim is straightforward. For example, if you are behind on your car loan, the amount of the claim is the amount of the total debt you owe. Similarly, if you owed your landlord back rent, the claim is the amount of rent due to the landlord.
Sometimes the amount you owe to a creditor is not easy to figure out. The amount you owe may depend on what someone else does or may not be determined yet. Or perhaps you and the creditor disagree as to how much you owe.
If any of these is true for one of your debts, you must indicate this on your bankruptcy papers.
Here’s what each of these terms means.
Want to learn more? Check out our bankruptcy resource center.
You may think you don’t really owe a contingent, unliquidated, or disputed debt, or you may not want to “admit” that you owe the debt. But rest assured -- by listing a debt on your bankruptcy schedules you aren’t admitting anything. Instead, you are making sure that if you owe the debt after all, it will be discharged in your bankruptcy (if it is dischargeable).