Colorable Claim Law and Legal Definition

A colorable claim refers to a legitimate claim of a person. Colorable claim may reasonably be asserted on the basis of facts presented and current law. It can also be asserted if there is a reasonable and logical extension or modification of current law. Generally, a colorable claim is applicable when a debtor and a property holder are not adverse. A colorable claim is usually made by a person holding property as an agent or bailee of the bankrupt.[Firestone Tire & Rubber Co. v. Bruch, 489 U.S. 101, 119 (U.S. 1989)]