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Information Regarding Claims

What is a claim?

A claim is a right to payment. A creditor of the debtor may have a claim. If a claims deadline has been established, creditors must file a proof of claim by that deadline. A creditor who does not file a claim by the deadline risks the claim not being paid.

How is a claim filed?

Persons who purchased membership plans in TelexFree or voice over internet packages from TelexFree (known as “Participants”) will need to file a claim in accordance with the electronic proof of claim procedures approved by the Bankruptcy Court. Creditors who are not Participants will be able to file a claim electronically using the Official Form 410.

What is the deadline to file claims?

There is no deadline yet for filing claims in the TelexFree cases and claims should not be filed at this time. The Bankruptcy Court entered an order on January 26, 2016 establishing an electronic process for the filing of claims. Claims will not need to be filed until at least 90 days after the internet website portal hosting the electronic proof of claim system is operational. The KCC website will inform parties of the date that the claims portal is operational and the deadline to file claims at the appropriate time.

Where to file Claims?

When the claims portal is operational, parties will be notified by this website where to file claims.

How long will it take for a claim to be paid?

The law does not establish any time period within which claims may be paid. In many cases, it can take over a year or more after the bankruptcy filing to receive payment on a claim. Some cases are complicated, in that there are many assets and issues to resolve. In complicated cases, claims may not be paid for several years and in some cases there are not sufficient assets to pay any claims at all.

Are claims paid in the order they are received?

No. The law determines the order and priority of claims paid.

Who determinates how claims are paid?

The trustee pays claims pursuant to the structure established in the Bankruptcy Code. They are also paid in order of priority. Additional Information about claims and the process may be found in Bankruptcy Code Sections 501 through 511.

How do I know my claim will be paid?

At this time, there is no information available to respond to that question.

What do I do if I move or change my telephone number?

If you move or change your telephone number, you must notify the Claims Agent.

What happens if I do not file a claim?

If you do not file a claim before the deadline, you will most likely receive no distribution in the TelexFree Cases.

What happens if I withdraw my claim?

If you withdraw your claim, you will receive no distribution in the TelexFree Cases.