For businesses & individual creditors
How to sell a
bankruptcy claim.
Understand the price.
Know when you get paid.
Decide whether selling works for you.
If a company in bankruptcy owes you money, a claim sale may give you an alternative to waiting for distributions. Wychwood Capital reviews your claim and, if we make an offer, sets out the price and terms for you to consider.
No account required. No obligation to accept an offer.
01 / The decision
What does selling a bankruptcy claim mean?
You agree to transfer specified rights to a buyer for an agreed purchase price. The agreement determines which future payments and other rights go to the buyer, and which responsibilities remain with you.
Start by separating three numbers: the amount you assert you are owed, the amount ultimately entitled to payment, and the price offered for your claim. They can be very different. An entry on a creditor list or a filed proof of claim should not be presented as a guaranteed recovery.
Compare a sale with keeping the claim.
A sale may help if you want liquidity or less time spent following the case. Keeping the claim may suit you if you can wait and prefer to retain its possible future distributions. Consider the amount, timing, uncertainty, and any obligations left under the sale agreement.
Read the sell-or-hold guide →02 / From inquiry to closing
How to sell your claim to Wychwood
- 01
Tell us who owes you money.
Send the bankruptcy case name, the creditor’s legal name, the approximate unpaid amount, and your contact details. Include a claim number if you have one. You can begin before gathering every supporting document.
- 02
Let us review the claim.
We review the case and your records, including the basis of the debt, ownership, prior payments, and issues that could affect the claim. We may ask for invoices, account statements, a proof of claim, or additional information. Submission does not guarantee an offer.
- 03
Review the actual cash price and terms.
If we make an offer, compare the purchase amount with the rights being sold and the agreement’s conditions. Ask which deductions, holdbacks, representations, or reimbursement obligations apply. Request clarification before signing.
- 04
Complete the agreement and closing.
If you choose to proceed, execute the agreed documents and complete the closing requirements. We require proof of identification before payment and confirm the seller’s authority and payment instructions. The agreement governs the transaction.
- 05
Get paid and receive transfer confirmation.
Wychwood pays within 48 hours of closing. After payment is complete, we file the claim transfer with the court. Once we verify that it appears on the docket, we send you a court-stamped copy for your records.
03 / Reading an offer
What determines the price of a bankruptcy claim?
There is no single purchase rate for every bankruptcy claim. We consider the claim’s likely treatment, the funds available for its class, the time to payment, and the work and risk involved in reaching that outcome.
- Claim status
- Is the debt supported by records? Are its amount, ownership, priority, or entitlement to payment unresolved?
- Case economics
- What assets or other sources may fund distributions, and what obligations and expenses stand ahead of the claim?
- Distribution timing
- Is there a funded distribution approaching, or do sales, litigation, and other steps still need to happen?
- The rights and terms
- What exactly transfers? How do conditions, adjustments, retained rights, and continuing seller obligations affect the offer?
Illustrative offer arithmetic
Translate a percentage into dollars.
A hypothetical $100,000 claim priced at 25% produces $25,000 before agreed deductions or holdbacks. This is arithmetic, not a Wychwood quote or an estimate of recovery.
$100,000.00 × 25% − $0.00
An illustrative zero deduction is not a fee promise. A holdback’s later release depends on the agreement. Values stay in this browser and are not submitted.
04 / Timing
How long does it take to sell a bankruptcy claim?
Two timelines matter: getting the transaction ready to close, and receiving payment after closing. Review time depends on the records, the claim’s status, and the agreed conditions. We do not promise that every inquiry can close in a fixed number of days.
Claim review, identity and authority checks, agreed documents, and any remaining conditions.
Wychwood completes payment. Signing alone is not the closing trigger.
Wychwood files the transfer, checks the docket, and provides the court-stamped copy.
The court-record process is separate from payment timing. Rule 3001(e) distinguishes transfers before and after a proof of claim is filed, as well as transfers for security. Applicable notice procedures, objections, and case-specific requirements can affect the court timeline. Read Rule 3001(e).
05 / A useful first conversation
What should you have ready?
- Case and creditor identity. The company in bankruptcy and the person or business that owns the claim.
- Amount and supporting records. The unpaid balance, invoices or account statements, and any payments or credits already received.
- Claim records, if available. A proof of claim, amendments, schedule entry, or correspondence about the claim.
- Known issues. Any objection, dispute, prior assignment, lien, or restriction affecting the rights you want to sell.
- Authority to sell. Who can sign for the owner; identity and authority documents will be needed before payment.
Start with what you have. A quote request does not file a proof of claim or extend a court deadline. View the full seller checklist.
06 / Questions from creditors
Before you decide
Can I request an offer without a claim number?
Yes. Start with the case name, creditor name, and approximate amount. We can discuss which records are needed for review. A quote request does not establish that a claim is allowed or replace a required court filing.
Can a disputed or scheduled claim be reviewed?
You can submit the details for review. Tell us whether the claim is filed, scheduled, disputed, or shown only on a creditor list. Those distinctions affect diligence and possible terms; they do not guarantee that we will make an offer.
Do I have to accept the quote?
No. An inquiry does not commit you to a sale. You decide whether the proposed price and agreement work for you before proceeding.
Is the offer percentage my expected bankruptcy recovery?
No. The offer is a proposed purchase price for specified rights. Future bankruptcy distributions may be higher or lower, may arrive later, or may not occur. An illustrative percentage on this page is not a valuation.
Will I still have obligations after selling?
Possibly. Read the agreement’s representations, indemnities, repurchase provisions, and requirements for forwarding notices or payments. Ask which obligations survive closing and what happens if the claim is later challenged.
Why do you need identification before payment?
We require proof of identification before sending payment and confirm who owns the claim and who has authority to complete the sale. We will explain the documents needed for your transaction.
Does a transfer filing mean the court has approved the claim amount?
No. Recording a transfer and determining the claim’s entitlement to payment are separate matters. A transfer does not resolve an objection or guarantee a distribution.
Sources & further reading
This guide explains Wychwood’s process and general considerations. The agreement and requirements of the particular case govern a sale. It is not legal or tax advice.
- Federal Rule of Bankruptcy Procedure 3001(e): transferred claims
- U.S. Courts: Transfer of Claim Other Than for Security, Form B 2100A
Wychwood Capital LLC is an independent claim buyer. We do not act for the bankruptcy court, debtor, trustee, or claims agent.
Put a price on the decision
Tell us about your claim.
Share the case name, creditor name, and approximate amount. We’ll review the information for a potential purchase offer.
Questions about who you’re dealing with? Ryan Vollenhals on LinkedIn ↗
claim online.View the creditor page ↗