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Claims Trading: Taking The Good With The Bad

Over the years, claims trading has become the norm in bankruptcy cases. Claims are bought and sold for various reasons, including to liquidate a position, make money and/or leverage a claim into ownership of the debtor. Regardless of the reason, litigation has arisen as to whether the buyer of a claim will be subject to the same attacks as the original claim owner. Based upon recent case law, the courts seem to be saying yes.

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