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Bankruptcy

Apr. 2, 2010

Bankruptcy Claims Trading: How to Maximize Your Returns

John Kim and Allan Ickowitz of Nossaman break down bankruptcy claims trading and lay out some best practices for selling claims.

By John Kim and Allan Ickowitz

Up is down and down is up in the current economic climate. Many large companies have or will file bankruptcies and attempt to restructure their finances. Any creditor that has filed a "claim" against a bankruptcy estate may receive offers from "claims traders" seeking to purchase those claims. So if an investment firm that you have never heard of contacts you seeking to buy your claim for 35 cents on the dollar, what do you do? How do you k...

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