PIONEER FUNDING LLC

We Buy Bankruptcy Claims

Turn Qualifying Bankruptcy Claims Into Cash

When a company that owes you money files for bankruptcy, collecting what you are owed can become a lengthy and uncertain process.

Pioneer Funding purchases qualifying bankruptcy claims from creditors, offering an alternative to waiting for a distribution through bankruptcy proceedings. We evaluate commercial claims and provide purchase offers based on the specifics of each case.

Whether you hold unpaid trade invoices, a Chapter 11 claim, or another eligible commercial claim, we can help you explore your options.

Pioneer Funding evaluates claims individually. An offer is subject to review, eligibility, and mutually agreed transaction terms.

Request a Bankruptcy Claim Offer

Tell us about your claim to get started

No obligation to proceed with a proposed purchase

Value Proposition

Sell Your Bankruptcy Claim Instead of Waiting for a Recovery

When a customer or business partner files for bankruptcy, outstanding debts can remain unresolved for months or years. The amount and timing of any eventual recovery may be uncertain.

Selling a qualifying bankruptcy claim may allow you to receive an agreed payment sooner and reduce your exposure to the remaining recovery process.

Pioneer Funding specializes in purchasing commercial bankruptcy claims. We work with creditors to evaluate their claims, discuss potential purchase terms, and facilitate the transfer of eligible claims.

Why Consider Selling Your Bankruptcy Claim?

Access Cash Sooner

Explore the opportunity to receive an agreed purchase price rather than waiting for a potential bankruptcy distribution.

Reduce Recovery Uncertainty

A claim sale can provide greater certainty about the amount you receive from the transaction, subject to the terms of your agreement.

Simplify Your Receivables

Selling an eligible claim may help your business resolve an outstanding receivable and reduce the administrative burden associated with pursuing a bankruptcy recovery.

Work With a Specialized Buyer

Pioneer Funding focuses on bankruptcy claims and evaluates the circumstances, documentation, and potential recovery associated with each opportunity.

Types of Claims Purchased

What Types of Bankruptcy Claims Do We Buy?

Pioneer Funding considers a range of commercial claims arising from bankruptcy proceedings. Eligibility depends on the debtor, the type and status of the claim, supporting documentation, and other transaction-specific factors.

Chapter 11 Bankruptcy Claims

We evaluate qualifying claims against companies undergoing Chapter 11 reorganization. Selling a claim may provide a creditor with an alternative to waiting for a plan, distribution, or other case resolution.

Chapter 7 Bankruptcy Claims

We consider eligible claims involving companies in Chapter 7 liquidation proceedings, subject to the specifics of the case and claim.

Trade Claims and Unpaid Invoices

If your business supplied goods or services to a company that subsequently filed for bankruptcy, you may hold a trade claim or accounts receivable that could be eligible for purchase.

Section 503(b)(9) Administrative Claims

Certain claims for the value of qualifying goods received by a debtor within the 20 days before a bankruptcy filing may receive administrative-expense treatment under Section 503(b)(9) of the Bankruptcy Code. We can review potentially eligible claims based on their circumstances.

Lease Rejection Claims

A debtor's rejection of certain leases or contracts can give rise to a claim. We evaluate eligible rejection claims in light of the underlying agreement and bankruptcy case.

Mechanics' Lien Claims

Certain claims arising from construction work, labor, or materials may be eligible for consideration, depending on the nature of the claim and applicable legal requirements.

Notes and Other Commercial Debt

We may also consider qualifying promissory notes, mortgage-related debt, and other commercial claims, depending on the structure and circumstances of the proposed transaction.

Not sure whether your claim qualifies?

Contact us with the debtor’s name, bankruptcy case number, and approximate claim amount. We can review the information and determine whether the opportunity merits further consideration.

How It Works

How to Sell a Bankruptcy Claim

Pioneer Funding aims to make the claim-purchasing process straightforward. Each transaction depends on the underlying claim, documentation, and agreed terms.

Pioneer Funding states that payment is typically made within two business days after the required documentation is completed. Actual timing depends on the transaction and the applicable terms.

Submit Your Claim Information

Tell us about the company that owes you money, the bankruptcy case, the amount of your claim, and your contact information.

We Evaluate the Opportunity

We review the available information, including the claim's status, supporting documentation, debtor circumstances, and potential recovery.

Review Your Purchase Offer

If the claim meets our purchasing criteria, we can discuss a proposed purchase price and the terms of the transaction. You can review the offer and relevant documentation before deciding whether to proceed.

Complete the Assignment and Payment

If both parties agree, the claim assignment documents are completed and the transfer is processed in accordance with the agreement and applicable bankruptcy procedures.

Why Pioneer Funding

A Specialized Approach to Bankruptcy Claims

Selling a bankruptcy claim involves more than identifying an outstanding balance. The claim’s legal status, the debtor’s circumstances, expected recovery, and transfer requirements can all affect whether a purchase makes sense.

Pioneer Funding focuses on evaluating and purchasing qualifying bankruptcy claims, helping creditors consider an alternative to holding their claims through the remainder of the bankruptcy process.

Experience in Bankruptcy Claims Trading

Pioneer Funding was founded in 2009 and focuses on purchasing claims arising from commercial bankruptcy proceedings.

Experienced Financial Professionals

Our leadership brings experience in investment banking, credit markets, restructuring, and principal investing.

A Case-Specific Evaluation

Every bankruptcy case is different. We evaluate claims individually and base any purchase proposal on the relevant facts and transaction risks.

A Direct Path to an Offer

Our claim-submission process gives creditors a practical starting point for discussing a potential sale without having to navigate the entire process on their own.

A Clear Transaction Process

We explain the proposed purchase terms and documentation so that creditors can evaluate the transaction before deciding whether to proceed.

Who We Work With

Helping Creditors Explore Their Bankruptcy Claim Options

Pioneer Funding works with businesses and other creditors that hold eligible claims against companies in bankruptcy.

Our potential sellers include:

Suppliers and vendors with unpaid invoices.
Businesses holding commercial accounts receivable.
Creditors with eligible Chapter 11 claims.
Holders of certain administrative claims.
Landlords and counterparties with qualifying rejection claims.
Holders of eligible notes and other commercial debt.

Whether you hold a single claim or a portfolio of claims, the first step is to provide enough information for us to understand the opportunity.

Not every claim will qualify for purchase, and submitting information does not obligate either party to complete a transaction.

Understanding the Decision to Sell

Should You Sell Your Bankruptcy Claim?

When a debtor files for bankruptcy, creditors may face a difficult decision: retain the claim and wait for a potential recovery, or consider selling the claim to a purchaser.

The right choice depends on your financial circumstances, the characteristics of the claim, the expected recovery, and the terms of any purchase offer.

Potential Benefits of Selling

Receive an agreed purchase price without waiting for the full bankruptcy process to conclude.
Reduce uncertainty about the proceeds received from the claim sale.
Reduce ongoing administrative involvement in pursuing the assigned claim.
Convert an illiquid asset into cash that may be used elsewhere in your business.

Factors to Consider Before Selling

The proposed purchase price compared with the face amount of the claim.
The potential recovery if you retain the claim.
The expected timeline for a bankruptcy distribution.
Any claim objections, documentation issues, or legal restrictions.
Contractual representations, warranties, indemnification, and possible refund obligations.

A purchase offer will generally be below the claim’s face amount because the buyer assumes recovery risk, time costs, and other expenses. The discount appropriate for any particular claim depends on the circumstances.

Before completing a transaction, review the assignment agreement carefully and consult your legal or tax advisers where appropriate.

Leadership and Expertise

Meet the Team at Pioneer Funding

Pioneer Funding combines financial-market experience with a focus on bankruptcy claims purchasing.

Co-Managing Partner

Adam D. Stein-Sapir

Adam D. Stein-Sapir brings experience in investment banking, leveraged finance, mergers and acquisitions, and restructuring-related transactions. His professional background includes CIBC World Markets and Fortress Investment Group.

Co-Managing Partner

Daniel B. Plaxe

Daniel B. Plaxe brings experience in investment banking, capital markets, and principal investing. His professional background includes Wachovia, CIBC World Markets, Deutsche Bank Securities, and Fortress Investment Group.

Together, the firm’s leadership focuses on evaluating claims and structuring purchases based on the circumstances of each bankruptcy case.

Frequently Asked Questions

Bankruptcy Claims Purchasing FAQs

What does it mean to sell a bankruptcy claim?

Selling a bankruptcy claim generally means transferring your rights in the claim to a purchaser in exchange for an agreed payment. The precise rights transferred and obligations retained depend on the assignment agreement and applicable law.

Does Pioneer Funding buy bankruptcy claims?

Yes. Pioneer Funding specializes in purchasing qualifying commercial bankruptcy claims. Each opportunity is evaluated individually, and not every claim will meet the firm’s purchasing criteria.

What types of bankruptcy claims can I sell?

Depending on the circumstances, potentially eligible claims may include Chapter 7 and Chapter 11 claims, trade claims, accounts receivable, certain Section 503(b)(9) claims, lease rejection claims, mechanics’ lien claims, and other commercial debt claims.

How much will Pioneer Funding pay for my claim?

There is no universal purchase price or fixed percentage for every claim. An offer depends on factors such as the debtor’s financial condition, the claim’s validity and priority, potential recovery, expected timeline, and transaction-specific risks.

How quickly can I receive payment?

Pioneer Funding states that payment is typically made within two business days after the required documentation is completed. The actual timeline depends on the transaction and the terms agreed by the parties.

Do I have to accept an offer?

No. You can review the proposed purchase price and transaction documents before deciding whether to proceed. Any sale is subject to mutually agreed terms.

What information do I need to submit?

Useful initial information includes the debtor’s name, bankruptcy case number, approximate claim amount, creditor details, and relevant documentation if available.

Can I sell a disputed bankruptcy claim?

Disputed claims may be more difficult to purchase and may not meet the firm’s criteria. Eligibility depends on the nature of the dispute, the claim’s status, available documentation, and the proposed transaction terms.

What happens if my claim is reduced after the sale?

The consequences depend on the assignment agreement. Certain agreements may require a seller to refund part of the purchase price or otherwise compensate the buyer if the claim is reduced or disallowed. Review all applicable provisions carefully before signing.

Is selling a bankruptcy claim the same as taking out a loan?

No. A claim sale generally transfers rights in the claim to a purchaser in exchange for a purchase price. A loan ordinarily creates a repayment obligation. The legal and financial effects of a transaction depend on its actual terms.

Does Pioneer Funding charge an upfront fee to review my claim?

Contact Pioneer Funding to confirm any fees, costs, or conditions that may apply to your particular transaction before proceeding.

Can I submit more than one claim?

You can contact Pioneer Funding about multiple claims or a portfolio of commercial claims. Each opportunity is subject to evaluation and the firm’s purchasing criteria.

Should I consult an attorney before selling my claim?

For significant or complex claims, independent legal advice can help you understand the assignment agreement, claim-transfer requirements, possible refund obligations, and any restrictions arising from the bankruptcy case.

Frequently Asked Questions