In the context of bankruptcy law, a contingent claim can exist under specific circumstances. For example, if a debtor is the co-signor on another person's loan and that person doe not pay. Contingent claims are debts which occur after some condition or "triggering event" occurs.
Under some conditions the event which creates the debt has not happened prior to the filing of the Bankruptcy Petition. Creditors in Chapter 11 claims must file proof of their claim if they want to recover payments from the estate, if the claims were not scheduled by the debtor in possession or if the debts were disputed, unliquidated or contingent.
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- Bankruptcy Petition - The bankruptcy petition is an official form filed by the person who wants to begin the Bankruptcy process. - read more
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