As a creditor in a Chapter 11 bankruptcy based in the United States, you have a few options available to you. Here are some common things that we recommend you do to better navigate the bankruptcy process - especially in the complex bankruptcies like FTX, Voyager, Genesis and more.
Stay informed: Keep track of the bankruptcy proceedings and stay updated on the case. You can do this by reviewing court documents, attending creditor meetings, or appointing a representative to monitor the proceedings on your behalf.
File a proof of claim: You should file a proof of claim with the bankruptcy court. This document details the amount of money you are owed and the basis for your claim. Filing a proof of claim is essential to ensure you have a valid claim in the bankruptcy case. The court will set a deadline for filing claims, so make sure to submit yours before the deadline.
Connect with other creditors: The bankruptcy court may hold meetings where creditors can discuss the case and ask questions. Attend these meetings to stay informed and have your voice heard. Many creditors form groups of unsecured creditors across Twitter, Reddit and Telegram.
Review the proposed reorganization plan: In Chapter 11 bankruptcy, the debtor typically proposes a reorganization plan to restructure its debts and continue operating. Review the plan and evaluate how it may impact your claim. If you believe the plan is unfair or does not adequately address your rights, you can object to it in court.
Engage in the bankruptcy process: As a creditor, you may have the right to participate in certain bankruptcy proceedings, such as motions, hearings, or voting on the reorganization plan. Stay involved and assert your rights as necessary.
Seek professional advice: Consulting with a bankruptcy attorney who specializes in creditor representation can provide you with valuable guidance and help protect your interests throughout the bankruptcy process.
Please note that the information provided here is general in nature and not a substitute for professional legal advice. The bankruptcy process can be complex, and it is recommended to consult with an attorney to understand how the specific facts of your case may impact your options as a creditor. Have a question about your claim in one of the crypto bankruptcies? Reach out to an Xclaim representative. To learn more about Xclaim and recovering value from locked crypto accounts, please visit: www.x-claim.com
Xclaim operates the only independent online trading platform for crypto bankruptcy claims. With the largest network of buy-side traders, crypto account holders can trust the competitive and transparent solution of an open-market platform to deliver the highest price and most favorable terms. Xclaim is relentlessly focused on helping its customers unlock value and better allocate risk amid rapidly changing market conditions.