Every marriage is not meant to last forever. No matter what the reasoning behind the divorce, it is important to have legal representation for each side. I almost lost everything because my former spouse said that he was taking care of things and that he would be fair about how the assets were divided. It took several weeks for me to find out what he was up to. It was then that I hired my own attorney and got what I deserved. You should never attempt to go through a divorce without a lawyer working on your side. On my site, I have listed several of the issues that can get overlooked if you are inexperienced with divorce documents and proceedings.
A Chapter 11 bankruptcy is done to give a company time to reorganize and create a better business model to help the business survive. The filing also gives a company extra time to pay off creditors. The creditors to a business are allowed by law to sell the claims they have against a debtor filing Chapter 11 bankruptcy. Selling the claims ensures that the creditors will get paid at least a portion of the money they lent or extended to the troubled company. If you are thinking of investing in these types of claims, you should get to know the process before you start. Here is a brief guide to give you a general idea of what to expect when you become involved in buying claims against a debtor filing Chapter 11 bankruptcy.
Type of Claims
There are two main types of claims that can be made against a debtor: secured and unsecured. Secured claims are backed by collateral. If the business isn't successful with its reorganization plan, the assets of the business will be sold to pay off claims. The creditor who has a secured claim against an asset will get paid from the proceeds of the sale of the asset. An unsecured claim means there aren't any assets attached to the debt owed, and the companies or individuals holding an unsecured claim will be among the last of the debtors to get paid. If you buy an unsecured claim, there is a chance you won't see any money from the purchase if the company goes out of business and there aren't enough assets to sell to pay off all of the company's debts.
Claim Trade Agreements
An agreement is reached between the buyer of the claim and the owner of the claim. The agreement will include the amount of the claim, the price paid for the claim, and the relationship between the seller and buyer. The amount of the claim is determined by how much of debt the buyer is purchasing. The purchase price is typically negotiated between the seller and buyer, but the price is usually much lower than the value of the debt.
The claim should already be filed against the debtor in the bankruptcy filing to prove the legitimacy of the debt. The buyer should make sure that there aren't any other legal claims to the debt in the agreement.
Legitimizing the Claim
The claim trade agreement should be reported to the bankruptcy court once the purchase of debt has been completed. Reporting the transfer of claim protects the buyer. The buyer of the claim will become the debtor of record once the bankruptcy court has approved and recognized the transfer of the claim. The buyer accepts all the risks associated with the claim, including the claim not getting paid, once the trade agreement has been filed and the ownership of the claim has been officially transferred in a court of law. Visit http://timgeorgelaw.com for more information.