Proving Your Claim in a Liquidation or Sequestration – When You Should, and When You Shouldn’t

KVV Inc Attorneys

Published on: 04/03/2025

When a debtor's estate is sequestrated/liquidated, creditors must decide whether to prove their claim. While proving ensures a share of available funds, it also risks liability for estate costs if funds are insufficient. Petitioning creditors must contribute regardless of proof. Secured creditors can protect themselves by relying on the proceeds of their security, waiving any concurrent claim to avoid contribution. Consult a lawyer for specific advice.