ABA Section of Business Law
eSource
Selling Bankruptcy Claims: Getting In on Cashing Out.
- Selling a bankruptcy claim can be a smart way to receive a substantial payment and to bow out of a bankruptcy case much earlier than the selling creditor might otherwise be able to. However, these seductively simply transactions are laden with traps for the unwary business person, who may be taking on risks she didn't anticipate and obligations she didn't understand. This article examines the risks and opportunities for selling creditors and warns about what to look for before signing on the dotted line.
