Frequently Asked questions

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What are the advantages of selling a bankruptcy claim? 

1) Immediate cash recovery. You can obtain cash now for an otherwise unliquid account. 

2) Avoid additional expenses. To protect and preserve your rights often involves reading legal notices and consulting with attorneys for the duration of the bankruptcy case

3) Avoid the risk of delayed recovery. Cases can be extended until all ligation is resolved.

4) Avoid the risk of illiquid recovery. Instead of cash distributions, many bankruptcy cases give securities and trust interests that may not be liquid.   

5) Get a tax benefit from trading your bankruptcy claim by applying the loss on the uncollected portion of your bankruptcy claim against current income in this tax year. 

What types of claims does BK Claim Trading purchase?     

General Unsecured  

503(b)(9)  Administrative Priority

Lease/Contract Rejections

Post Petition

Liens & Judgments

Litigation Claims

What is a 503(b)(9) claim?

Claims under Section 503(b)(9) of the U.S. Bankruptcy Code that provides administrative expense priority status . These claims are for goods received by the debtor within 20 days of the bankruptcy filing

Should I file a proof of claim?

You should file a proof of claim even if you agree with the scheduled amount since debtors can amend schedules throughout the case.  The proof of claim includes a form and backup documentation to substantiate the claim.

When do we receive money from selling a claim?

Wires are initiated within 24-48  hours after signing the Final Assignment of Claim. 

Average duration of Chapter 11 bankruptcy cases: 550.42 days