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claims on a bankrupt company

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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

 

Thx

J Huck

[email protected]

 

1 Answer

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Hi Joe,

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.

Your Answer

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Hi Joe,

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.

Category: asked March 15, 2014

1 Answer

0
Hi Joe, 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.