One Company Influences Bankruptcy Claims Trading

Just one company's bankruptcy filing was enough to influence total claims trading in the US for the month of August.

The company, which filed the largest bankruptcy in American history, has been in a year-long battle over the terms of its bankruptcy. Yet from July to August, overall bankruptcy claims traded fell from 1,352 to 891. In monetary terms, the drop was significant: $3.55 billion in July to $2.22 billion in August.

Bankruptcy claims trading is vital for creditors who are trying to recover some of their losses. They can trade their stake in a bankruptcy, which is generally sold in cash. The investor, oftentimes a hedge fund investor, will then take this claim and bank on getting a large return once the bankruptcy settlement has been completed.

Other companies also saw a decline in claims trading, including a restaurant chain, a telecommunications company and a college bookstore franchise.

If you need help filing for bankruptcy in Texas, take the time to contact the Malaise Law Firm to set up a consultation with a San Antonio bankruptcy attorney. We can help you get through difficult financial times.