What are the Pros and Cons of selling my pre-petition claim in bankruptcy?
Answer: In a sale, the
rights held by the original claim-holder are transferred to the purchaser
of the claim... even if the actual purchase price was substantially discounted
from the face value of the claim [which it usually is].
From the seller perspective, selling a claim present an opportunity
to recoup at least part of its pre-petition balance. Due to the uncertainty
associated with the size and timing of payment by a bankrupt debtor,
many creditors choose to sell their claim for immediate cash rather than
hold onto it for a possibly better return in the future.