What Happens After Filing a Proof of Claim?
It all started when you received a Notice of Bankruptcy (Form 309) in the mail. Your debtor filed for Chapter 11 bankruptcy and now you've filed a Proof of Claim form (Official Form 410) in order to recoup the debt that is owed to you. What happens after filing a proof of claim?
As a creditor in a Chapter 11 bankruptcy case, here are your options of what to do next.
Option A: Wait...
Corporate bankruptcy cases are complicated and lengthy, easily taking years to resolve before courts consider whether to approve a payment distribution for creditor claims. Procedurally, creditor claims are categorized into claim classes. There is a court mandated order in which claims are paid out to their creditors, which is based on claim priority, class, and type—all of which are factors that can further delay the timing of payments to creditors.
Creditors have the option of waiting for the eventual recovery of the debt, or considering other methods.
Option B: Sell
The decision to offer your bankruptcy claim for sale delivers more control over the timing and outcome of your claim. The road to faster debt recovery is in your hands, and not constrained by the timeline of the legal process and the deliberations of the bankruptcy court.
We built the Xclaim Marketplace to empower creditors like yourself with the singular goal of getting you paid, and fast.
Xclaim offers creditors the opportunity to recover money by selling their bankruptcy claim. Sign up to join the marketplace and connect with interested buyers today.