Covering Business Credit

Credit Questions and Answers
Business Credit and Collections
Commercial Credit Management

Return to Q and A 2004Home

Doctor Credit

Why am I receiving an offer to sell my claim in bankruptcy for 10 cents on the dollar to a company I have never heard of before?

Answer: The simple answer is because that company believes that it will make money on the deal when the Plan of Reorganization is confirmed and payments are issued to pre-petition creditors – even taking into account the time value of money calculation.

spacer spacer