Also known as: holders of a claim · claim holder · claim holders · creditor · claimant
Written by attorneys · grounded in primary & secondary sources — see below
A person or entity possessing a right to payment from a debtor arising from a pre-petition transaction or occurrence. This status qualifies the holder as a creditor with standing to initiate involuntary bankruptcy proceedings against the debtor.
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Horizon Dynamics held a claim against its supplier for unpaid invoices arising before the petition date. Helena Hoffman purchased the supplier and assumed the debt. When Horizon Dynamics filed an involuntary petition, its status as holder of a claim against the debtor established standing to join other creditors in commencing the case.
Hassan Hakim consented to being listed as a partner on public filings for Harmony Retail. A supplier relied on that representation and extended credit. After Harmony Retail entered bankruptcy, the supplier's status as holder of a claim against the purported partnership allowed it to pursue joint and several liability in the bankruptcy case.
Harriet Hamilton held a beneficial interest in a trust without a spendthrift clause. Her judgment creditor obtained a court order attaching future distributions. When Harriet filed bankruptcy, the creditor's status as holder of a claim allowed the attachment to continue against distributions to the extent permitted by the trust terms.
Hunter Hughes held an estate in fee simple conditional in farmland. A bank obtained a judgment lien against the land. When Hunter filed bankruptcy, the bank's status as holder of a claim permitted it to reach the interests Hunter had power to transfer under the fee simple conditional rules.
Hakeem Harris performed partial services under a contract later held unenforceable. The recipient received the benefit of those services. When Hakeem filed bankruptcy, his status as holder of a claim allowed recovery measured by the reasonable value of the services to the recipient.
Highland Farms obtained a judgment against a limited partnership. The judgment remained unsatisfied after execution against partnership assets. When the general partner filed bankruptcy, Highland Farms' status as holder of a claim permitted it to seek permission to levy against the general partner's personal assets under the statutory conditions.
Only a creditor that qualifies as the holder of a claim against the debtor may serve as a petitioning party. An indenture trustee representing such creditors may also petition, but an impartial watchdog group lacks standing.
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The petitioner must be a creditor holding a claim, the claims must meet tests regarding their nature and amount, and a minimum number of eligible petitioners must join the request.
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The requirement creates a self-interested nexus between the petitioner and the bankruptcy case, which helps police against misuse of the involuntary process.
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