Key Takeaways
- Define the asset, objective, scope, and decision timeline before outreach.
- Keep data, documentation, ownership, servicing, and material exceptions connected.
- Compare complete economics and execution terms rather than a headline number alone.
- Document responsibilities, transfer controls, and the next review step.
Identify the exact claim
Provide the debtor and case identifiers, proof of claim where filed, scheduled amount and status, supporting invoices or agreements, payment history, assignments, and any amendments. Identify priority, security, disputed or contingent status, objections, and relevant communications.
A filed or scheduled amount is not necessarily the amount ultimately allowed or distributed. Buyers need the evidence supporting the rights offered and the seller’s authority to transfer them.
Understand the economic tradeoff
A sale can exchange an uncertain distribution stream for negotiated cash at closing. Holding the claim can preserve potential upside but may require time, monitoring, advice, and tolerance for delayed or non-cash distributions. Compare the net alternatives rather than assuming that one is always preferable.
Review legal and contractual exposure
Counsel should assess claim objections, defenses, setoff or recoupment issues, avoidance-related exposure, existing agreements, and other relevant case facts. The assignment can include representations, warranties, indemnities, price adjustments, or repurchase obligations.
Calling the transaction a “true sale” does not by itself make it nonrecourse or prevent later disputes. Review the actual allocation of risk.
Follow the applicable transfer procedure
Federal Rule of Bankruptcy Procedure 3001(e) addresses transfers of claims, including evidence-of-transfer and notice procedures in specified circumstances. The required steps depend on when and how the claim is transferred and other case requirements. The process is not categorically outside court procedures.
Coordinate the assignment agreement, purchase-price calculation, conditions, funding, any required filing and notice, and treatment of distributions in transit. The purchaser identified in the agreement becomes the assignee; Fitzgerald Advisors’ advisory role should be stated separately.
Begin with a claim summary
Provide an aggregate description and available case identifiers for an initial discussion. A quotation remains subject to buyer review and agreed terms; there is no guaranteed price or closing timetable.
Sources and Further Reading
This page provides general information for institutional and commercial readers. It is not legal, tax, accounting, investment, or transaction-specific advice. Requirements and outcomes depend on the assets, parties, jurisdictions, and agreements. Obtain appropriate professional advice for a proposed transaction.