Any creditor of the assignor who questions the validity of any other creditor's claim, or the trustee if he questions the validity of any claim, may file, within 30 days after the recordation of the deed, a petition against the creditor whose claim is questioned in the court that would have jurisdiction if the action was brought by the creditor whose claim is questioned against the assignor, and the burden of proof shall be upon the creditor whose claim is questioned. Upon the filing of such petition, the court may order the party whose claim is questioned to appear to defend such claim and the court shall determine the matter in a summary way.
§ 8.01-525.3.Procedure to question claim of creditor.
Chapter 18.1. Assignments for Benefit of Creditors · Article 1. Assignment of Property · Last amended 2019 · Last verified July 16, 2026
In one sentenceGives a fellow creditor, or the trustee, thirty days after the deed’s recordation to file a petition challenging the validity of another creditor’s claim in the court that would have jurisdiction had the challenged creditor sued the assignor, placing the burden of proof on the creditor whose claim is questioned and letting the court resolve the dispute summarily.
Full Text of § 8.01-525.3
Plain-English Summary
Not every claim filed against an assignment estate deserves a share of the proceeds, and Section 8.01-525.3 gives the people with a stake in the answer, other creditors and the trustee, a fast way to test a questionable one.
Anyone with standing to object has thirty days from the deed’s recordation to file a petition against the creditor whose claim looks wrong, in the court that would have had jurisdiction if that creditor had sued the assignor directly. That thirty-day window keeps disputes from dragging on and delaying distribution to everyone else.
The burden lands on the creditor being challenged, not the one raising the objection — that creditor has to justify the claim once it is put in question. Once the petition is filed, the court can order the challenged creditor to appear and defend the claim, and the whole matter gets resolved in a summary way rather than through a drawn-out lawsuit.
Frequently Asked Questions
Who can challenge a creditor’s claim under this section?
Any creditor of the assignor who questions another creditor’s claim, or the trustee if the trustee questions it.
How long after recordation of the deed can a challenge be filed?
Within 30 days after the deed’s recordation.
Which court hears the challenge?
The court that would have had jurisdiction if the challenged creditor had sued the assignor.
Who has the burden of proof in this proceeding?
The creditor whose claim is questioned.
How does the court resolve the dispute?
The court may order the challenged party to appear and defend the claim, and determines the matter in a summary way.
Amendment History
1924, p. 658; Michie Code 1942, § 5278c; Code 1950, § 55-158; 2019, c. 712.
Source & verification. Section text and amendment history are
reproduced verbatim from the Code of Virginia, published by the
Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026.
· Official source
Also known as: virginia challenge creditor claim assignment for benefit of creditorsdispute claim in deed of assignment virginiava code 8.01-525.3thirty day objection creditor claim virginiatrustee questions creditor claim virginia