Proof of debt
The form a creditor lodges with an administrator or liquidator to claim what it is owed.
Lodging a proof of debt is how a supplier gets a vote at creditors' meetings and a share of any dividend. It does not create or improve security. A supplier with a registered interest should state it on the form and assert its claim to the goods separately.
Related terms
- Unsecured creditor — A creditor with no security interest over the debtor's property, paid last in an insolvency.
- Liquidation — The winding up of a company: its assets are sold and the proceeds paid to creditors in a fixed order.
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