A proof of claim is not required for a creditor to participate in the distribution of the proceeds of the liquidation of the debtor's estate.

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A proof of claim is required for a creditor to participate in the distribution of the proceeds of the liquidation of the debtor's estate. The proof of claim form is used to provide evidence of the debt owed by the debtor to the creditor and is necessary for the creditor to receive any payment from the bankruptcy proceeding. Without a proof of claim, the creditor's claim may be disallowed or not considered in the distribution of the estate's assets.

A Proof of Claim Is Not Required for a Creditor