Allowed Claim | Practical Law
Allowed Claim
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Allowed Claim
Practical Law Glossary Item 2-382-3225
(Approx. 2 pages)
Glossary
Allowed Claim
A
claim
that the court has approved for payment under a
plan of reorganization
. Creditors are entitled to vote on a plan only if their claims are
impaired
and allowed. Claims are deemed allowed if they are scheduled (
§ 501, Bankruptcy Code
) or filed (
§ 502, Bankruptcy Code
), unless a
party in interest
(such as the debtor or the
creditors' committee
) objects. A claim or interest that is listed on the debtor's schedules as undisputed,
noncontingent
, and
liquidated
is also deemed allowed unless objected to.