P

Proving

Proving refers to the act of a creditor claiming his or her debts. Such a person is told to be "proving" for his/her debt by submitting a special document in order to get the money owed to him/her back. This statutory document is called "Proof of Debt" and its purpose is to demonstrate a creditor's claim. Proving might involve submitting an informal letter, but it might be formal as well when creditors use prescribed forms. Bankruptcies for instance require formal proving from creditors.

Proving has two basic forms: voluntary liquidations make proving to be optional, while compulsory liquidations make submitting a Proof of Debt mandatory. Nevertheless, if a creditor is "proving" for his or her debt, the Proof is supplied by the insolvency practitioner who is responsible for taking care of the Individual Voluntary Arrangement.