Trade Your Bankruptcy for Cash Now

We have been buying bankruptcies and providing liquidity to creditors for over 10 years

Sell Us Your Bankruptcy Claim for an Immediate End to a Long, Costly, Frustrating Case

Don’t risk getting nothing in the end. The bankruptcy court process is lengthy, expensive, and most often disappointing. Selling your bankruptcy claim avoids cases in which recoveries are low or non-existent for unsecured bankruptcy claims after administrative expenses (lawyer and advisor fees) and secured creditors are paid. There are three kinds of risk that indicate selling your trade claim may be your best, safest, clearest option. In the well-known Dean & DeLuca bankruptcy, the company forecasted paying from zero (0) to 20 cents on the dollar for bankruptcy claims. Sources close to the case say the final award was closer to 10 cents on the dollar.

Get cash for your bankruptcy trade claim now. Once the creditor files for bankruptcy, all actions to collect must cease. You must litigate or sell your bankruptcy claim. You’re faced with the time and expense of a corporate bankruptcy case which can take an average of two years — and that’s not counting potential additional expenses and fees for creditors like you specifically if the Debtor objects to your claim. You can sell your bankruptcy claim right now in four steps.

Avoid illiquid securities like promissory notes, stock, or a combination thereof. At the conclusion of a bankruptcy case — after all that time and expense — you may only receive “illiquid” securities that selling your bankruptcy claim avoids. Trading in bankruptcy claims gives you money to reinvest in your business today. Learn more about some of the details about buying and selling bankruptcy claims.

Save time and money in bankruptcy claim proceedings. To recover your losses, you must often appear in the bankruptcy court. And court costs and attorney fees can eat up any cash settlement you might receive for your trade claim. Selling your trade claim for cash now avoids wasting more time in bankruptcy court and you can go back to focusing on your business immediately. Is your bankruptcy claim impaired? Check for impairment of your trade claim.

Reduce your taxes. Get a tax benefit from trading your bankruptcy claim by applying the loss on the uncollected portion of your bankruptcy claim against current income in this tax year, based on revenue from selling your trade claim.

We are nationally recognized bankruptcy claim buyers who work quickly and efficiently to meet the unique needs of our clients, from sole proprietors to the Fortune 50
We buy and trade bankruptcy claims like trade invoices, mechanics liens, lease and executory contract rejection claims, mortgage and promissory notes, and other types of bankruptcy claims
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Agree On A Price

Pioneer works closely with you to achieve your objectives while also providing the most competitive price and terms in the market for buying your bankruptcy claim.

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Simple Contract

Our contract is simple and straightforward – drafted in plain English and completely understandable for finance and legal professionals alike. Selling your bankruptcy claim is not a drawn-out process like actual bankruptcy court.

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Payment Within 2 Days

We guarantee payment for your bankruptcy claim within 2 days by wire transfer or check with tracking number

Nationally Recognized Bankruptcy Claim Buyer

The Team

Adam D. Stein-Sapir

Co-Managing Partner
Adam has over 20 years of experience on Wall Street. He has participated as sole lead manager on over $3 billion in capital raised. Adam started his career in the leveraged finance group of investment bank CIBC World Markets. At CIBC he advised companies and private equity sponsors on M&A, LBOs and restructurings and focused on debt and equity capital raising. Notable transactions include the first ever U.S. Income Trust offering for Centerplate. Following CIBC, Adam was a member of Fortress Investment Group’s direct lending team.

Daniel B. Plaxe

Co-Managing Partner
Dan has over 20 years of experience on Wall Street. He has executed over $35 billion of capital markets transactions during the tenure of his investment banking and principal investing career. Dan began his career as a financial analyst at Wachovia Bank before joining the Corporate Finance Group of Arthur Andersen.

Daniel B. Plaxe

Co-Managing Partner
Dan has over 20 years of experience on Wall Street. He has executed over $35 billion of capital markets transactions during the tenure of his investment banking and principal investing career. Dan began his career as a financial analyst at Wachovia Bank before joining the Corporate Finance Group of Arthur Andersen.

Submit a Bankruptcy Claim Bid Request

Frequently Asked Questions About Bankruptcy Claims

Pioneer is buying bankruptcy claims in certain Chapter 11 and Chapter 7 cases as an opportunity for creditors (bankruptcy sellers) to sell their claims for an immediate, certain cash settlement that can be reinvested in your business. Pioneer accepts the recovery and timing risk so your company keeps the cash settlement of your bankruptcy claim regardless of what Pioneer ultimately recovers.

In the last ten years, the size, scope, and complexity of trading claims in bankruptcy has changed dramatically. Once dominated by individual bankruptcy sellers hoping to receive some value for their uncollected debt in Chapter 11 bankruptcies, buying and selling unsecured bankruptcy claims has become big business. Investment firms, hedge funds and investments banks, in the role of claims traders, buy bankruptcy claims, especially in large Chapter 7 and Chapter 11 bankruptcies, and wait until the end of the case to potentially earn a profit. In most cases, buyers are professional claims traders, who may either hold the claim, resell it, or trade the claim. These buys are made either to make a profit or with the strategic objective of controlling the direction of the Chapter 11 bankruptcy case by owning a substantial percentage of one or more classes of creditors.

The creation of a market in trade claims in bankruptcy is the single most important development in the bankruptcy world since the Bankruptcy Code’s enactment in 1978. Claims trading has revolutionized bankruptcy by making it a much more market-driven process. Instead of serving as a forum for creditors to negotiate a restructuring of the debtor’s finances, with the goal of limiting their losses, trading bankruptcy claims is now a general investment opportunity.

The development of a robust market for trading all kinds of bankruptcy claims has changed the cast of characters involved in bankruptcies. In addition to long-standing relational bankruptcy sellers, like trade creditors or a single senior secured bank or bank group, bankruptcy cases now involve professional distressed debt investors, whose interests and behavior are often quite different than traditional relational counter-party creditors.

The Debtor filed for bankruptcy because it does not have the necessary liquidity to pay its obligations. U.S. Bankruptcy Code states that the filing of a bankruptcy petition suspends all actions against the Debtor. This so-called “automatic stay” prevents bankruptcy sellers from collecting debts or pursuing other remedies against the Debtor. That freezes your ability to recover what you’re owed, which is why selling to a bankruptcy claims buyer is a great option.

The bankruptcy seller’s primary motivation for selling a claim (unpaid accounts receivable in bankruptcy) is to (i) realize an immediate cash payment, (ii) avoid the risk of delayed recovery, less recovery, or potentially no recovery, (iii) eliminate their risk of receiving illiquid stock or notes. A bankruptcy seller can be any trade creditor with an unsecured claim in the bankruptcy. However, members of the official Unsecured Creditor’s Committee will generally have to resign prior to selling their bankruptcy claim.

  • Elimination of Recovery Risk: Unsecured creditors are the last in line to receive distributions. In many cases, recoveries are low or non-existent for unsecured claims after administrative expenses (lawyer and advisor fees) and secured creditors are paid. Selling your non-performing bankruptcy claim for cash to a claims trader allows you to secure a definitive recovery, eliminating the risk of an uncertain bankruptcy outcome.
  • Immediate Cash Conversion: The average duration of a corporate bankruptcy claims case is approximately 2 years from the filing date to the plan effective date, but many cases take far longer due to litigation, disputes between creditors, facility shutdowns, and labor issues. Selling your non-performing bankruptcy claim for cash to a trader in bankruptcy claims eliminates the time risk associated with a bankruptcy case and allows you to immediately re-invest the cash into your business.
  • Elimination of Consideration Risk: Assuming there is sufficient value remaining at the conclusion of a bankruptcy case, unsecured creditors may receive distributions in the form of promissory notes, stock, cash or a combination thereof. Promissory notes and stock are difficult and costly to liquidate and often cannot be sold immediately. When you sell your non-performing bankruptcy claim for cash, you eliminate the risk of receiving illiquid securities.
  • Elimination of Time and Cost Associated with the Bankruptcy Process: Corporate bankruptcy cases involve a great deal of paperwork and correspondence between the Debtor, the bankruptcy court and creditors. In return for selling your non-performing bankruptcy claim for cash, you get back the time, money and valuable human resources required to follow and participate in a bankruptcy case from start to finish.
  • Favorable Tax Benefits: Bankruptcy sellers are very often be eligible for a tax benefit by applying the loss on the uncollected portion of your bankruptcy claim against current Income.

The entire process from first contact to receiving your funds can be completed within a few days. Pioneer typically can process payment to bankruptcy sellers within 2 business days of completing documentation.

As a creditor in the bankruptcy case, you can choose to sell the bankruptcy claim or hold the claim until the bankruptcy case proceedings are complete and distributions (if any) are made.

Our offer price for your bankruptcy claim is based on several factors, including the prospects and level of recovery (which encompasses the Debtor’s financial condition, trends in the Debtor’s industry and any litigation against the Debtor), the estimated time until recovery, the potential for receiving illiquid stock or promissory notes, and our required return.

Obviously, not all unsecured bankruptcy claims are equal and not all will be of interest to a trade claims buyer. In general, claims that are being purchased are (i) large, (ii) undisputed in the debtor’s schedule of liabilities filed with the bankruptcy court, (iii) recognized as valid by the Bankruptcy Court, or (iv) Section 503(b)(9) administrative claims, which enjoy priority of payment over unsecured claims.

Bankruptcy court filings are available to the public for review and evaluation through PACER (which is a paid service that requires users to register for a login and password).

No, Pioneer assumes all of the recovery risk in terms of the amount paid on the bankruptcy claim. Pioneer is only entitled to a proportional refund if the face amount of the claim you sold us is reduced or expunged by the bankruptcy court as detailed in the Assignment of Claim Agreement.

Pioneer requires that you have a valid bankruptcy claim that has not been previously sold, objected to, or satisfied. We recommend that you check your records carefully prior to accepting our offer. We reserve the right to review the validity of any claim and may refuse to purchase your claim for any reason.

Buying and selling bankruptcy trade claims is freely allowed in Chapter 7 and Chapter 11 bankruptcies and can be of benefit to both the trade creditor and the bankruptcy claims buyer.

The following steps outline the typical process involved in buying and selling bankruptcy claims. Note that the mechanics of buying claims are not set out in the Bankruptcy Code and the Bankruptcy Court is not involved in negotiating or approving the purchase price or claim assignment documentation. There are notice requirements and sometimes restrictions on claims trading among insiders.

Step 1: The Offer: The process usually begins with a buyer offering, in written or verbal form, to purchase a creditor’s claim. Offers are expressed as a percentage of the claim amount.

Step 2: Confirmation: Often after a price is agreed upon, a confirmation document which outlines the key terms of the offer is prepared by the buyer.  It usually includes: (i) claim amounts to be purchased, (ii) purchase price, (iii) other terms of the sale.  Sometimes this step is skipped in favor of going right to an Assignment of Claim Agreement.

Step 3: Claim Assignment Agreement: This document describes all the terms and conditions of the offer. Some key terms include the price, payment terms, seller representations and warranties, claim buyer responsibilities, governing law, transfer of claim procedures, etc.

Step 4: Evidence of Transfer of Claim: This is required by the Bankruptcy Court as a means to notify the debtor and other parties of the claim transfer. The transfer of claim does not state the price paid.  All terms of the Claim Assignment Agreement remain confidential between the claim buyer and trade creditor.

If you are a creditor in a Chapter 11 bankruptcy case, you may be required to file a Proof of Claim in the bankruptcy court in order to validate your bankruptcy claim against the Debtor. We highly recommend companies file a Proof of Claim to help with the claims reconciliation process. If you are a creditor in a Chapter 7 bankruptcy case, you need to file a proof of claim. For more information on Proofs of Claim including how to file a claim in the bankruptcy proceedings using the Official Form B10, refer to the information on our Proof of Claim Form page.

Once Pioneer receives the complete documentation, we will file the Notice of Transfer of Claim form with the bankruptcy court and no further action to transfer the claim will be required on your part.

No. Pioneer is an independent investment firm (A+ rated by Better Business Bureau) founded in 2009 and is not related to the Debtor or affiliated with the bankruptcy court. Learn more about the principals of Pioneer here. As an expert on bankruptcy matters, Pioneer is featured extensively in the news.

We purchase non-performing invoices and receivables, mechanics liens, lease and executory contract claims, mortgage notes, other types of bankruptcy claims from suppliers, landlords, lenders and other creditors in Chapter 7 and Chapter 11 bankruptcy cases.

We are purchasing claims in a number of bankruptcy cases. Please call us for specific details or complete our Bid Request Form. Alternatively, you can email us a list of bankruptcy trade claims and we will review the documents and contact you within 2 business days.

Testimonials from Chapter 11 Creditors

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(646) 237-6969

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(917) 856-6606

Adam D. Stein-Sapir​

Co-Managing Partner

Adam has over 20 years of experience on Wall Street. He has participated as sole lead manager on over $3 billion in capital raised. Adam started his career in the leveraged finance group of investment bank CIBC World Markets. At CIBC he advised companies and private equity sponsors on M&A, LBOs and restructurings and focused on debt and equity capital raising. Notable transactions include the first ever U.S. Income Trust offering for Centerplate. Following CIBC, Adam was a member of Fortress Investment Group’s direct lending team.

Since co-founding Pioneer in 2009 Adam and the team have acquired hundreds of bankruptcy claims across more than 100 bankruptcy cases. Adam, representing Pioneer, has served on the Unsecured Creditors Committee of Phoenix Heliparts (Chair) and MSR Resort as well as the Plan Trust Advisory Board of Partsearch Technologies. Adam has been quoted in the Wall Street Journal, Bloomberg, Forbes, New York Post, New York Daily News, Philadelphia Inquirer, Turnarounds & Workouts magazine and he is a contributor to Commercial Bankruptcy Investor. Adam graduated from the University of Pennsylvania’s Wharton School with a B.S. Economics, magna cum laude and an MBA. Adam held Series 7 and 63 securities licenses from the Financial Industry Regulatory Authority (FINRA) during his employment at various investment banks.

Daniel B. Plaxe

Co-Managing Partner
Dan has over 20 years of experience on Wall Street. He has executed over $35 billion of capital markets transactions during the tenure of his investment banking and principal investing career. Dan began his career as a financial analyst at Wachovia Bank before joining the Corporate Finance Group of Arthur Andersen. After business school, Dan worked in the Leveraged Finance Group at both CIBC World Markets and Deutsche Bank Securities where he advised companies and private equity sponsors on leveraged buyouts and bank and bond financings. Following Deutsche Bank, Dan joined Fortress Investment Group’s Drawbridge Special Opportunities Fund where he was a member of their direct lending team in New York. Dan received an MBA degree in Finance from the University of Pennsylvania’s Wharton School and a B.A. degree in Political Science from Bucknell University. Dan held Series 7 and 63 securities licenses from the Financial Industry Regulatory Authority (FINRA) during his employment at various investment banks.

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