claims on a bankrupt company
I had a US brokerage acccount in a firm that embezzeled funds
and then declared bankruptcy
i have received some money back (about 40%)
Since the I have been receiving many offers to buy my claim
for the outstanding balance and take it up to about 50%
Can you tell me what is going on and what are the procedures that
I can follow
eg should I wait in the hopes of getting more of what is entitled to me?
or is this a get some money quick and leave the rest for the liquidators
Thank you for your question. To get a definitive answer, you will need to consult with a US based bankruptcy lawyer since your question relates to bankruptcy proceedings in the United States.
But what I think is happening is this: a company will purchase your claim against the bankruptcy estate of the US brokerage firm for (let’s say) 20 cents on the dollar of your claim. If in fact the bankruptcy estate ends up distributing a final payment of 30 cents on the dollar, then the company that purchased your claim has made a profit on the difference (i.e., 40% – 30% = 10%).
What you decide to do is up to you, but you really should consult with a US based bankruptcy lawyer to evaluate your options. Good luck.