selling a chapter 11 bankrupt judgment

dstebbins · #1 (**permalink**) 04-19-2010, 12:26 PM

I am about to secure a judgment against a sole proprietorship who is not insured for this kind of thing. He does not meet the means test to qualify for Chapter 7 bankruptcy, and the debt is too much to qualify for Chapter 13 (unsecured debts, such as tort judgments, cannot exceed $392,000 and some odd dollars when Chapter 13 is filed). Therefore, Chapter 11 bankruptcy is his only exit, short of literally being in debt the rest of his life.

That being said, if I wanted to sell the accounts receivable so that I didn't have the headaches of having to collect, what percentage of the judgment can I hope to get, provided that their only "insurance" is the bankruptcy court's belief that the reorganization is sufficient to pay off the debts?

sapphirecapital · #2 (**permalink**) 04-20-2010, 02:01 AM

depends on the amount of the judgement and if the judgement is based on fraud.

stebbinsd · #3 (**permalink**) 04-20-2010, 02:26 AM

Quote:

Originally Posted by sapphirecapital

depends on the amount of the judgement

I was hoping for a percentage; not a flat amount.

But, suffice it to say that it is a multi-million dollar settlement. We're talking, forget seven figures; try EIGHT figures!

Quote:

and if the judgement is based on fraud.

Well, it's not. It's employment discrimination.

By the way, just for the record, would having the judgment be based on fraud be good, or bad, fort he judgment creditor?

sapphirecapital · #4 (**permalink**) 04-21-2010, 04:23 PM

read: http://law.hofstra.edu/pdf/Academics...o1_Adamson.pdf

rockstar1 · #5 (**permalink**) 06-19-2010, 01:35 PM

gud info................

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