Bankruptcy is a federal court process designed to help consumers and businesses eliminte their debts or repay them under the protection of the bankruptcy court.
Notice of Bankruptcy and Proof of Claim are legal forms sent by the bankruptcy court to a person's or company's creditors. You might receive a Proof of Claim when you're not owed money, and you could receive a bankruptcy notice with or without a Proof of Claim form.
UCSD has centralized the handling of bankruptcy notices and filing of forms required to protect your department’s interests. If your department receives either of these forms, here are things you should know:
- Act immediately to determine if the company in bankruptcy owes money to your department or funds your project.
- If money is owed, you may need to process a Proof of Claim through the Office of the Controller. Read How to Process a Proof of Claim for step-by-step instructions.
- If the company funds your project, be aware that bankruptcy notification usually results in suspension of financial commitments by the bankrupt party, and your project may be discontinued.
- Once the Office of the Controller files your Proof of Claim paperwork, proceedings may take years, and recoveries vary.
- Payment can be in dollars or sometimes vouchers.
- The Office of the Controller determines how payment is distributed in accordance with UCSD policy, and will contact your department when applicable.
If you have questions, contact Sandra Dredla, (858) 534-3048.
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