We take time to understand your claim and provide a bespoke solution accordingly. We support you throughout the process, making it as easy as possible for you.

WHAT WE BUY

507 Capital specializes in providing liquidity globally by purchasing bankruptcy claims, distressed debt, liens, judgements, distressed assets, and frozen accounts.

Bankruptcy Trade Claims
Debts owed for goods and services by bankruptcy businesses, including liens such as mechanic’s liens.
Judgements
Uncollected judgements or awards from debtor estates.
Remnant Assets
Known and unknown assets of corporation estates deemed to be too insignificant for the estate to collect.
DIP & Exit Financing
Super-priority, secured funding for businesses entering Chapter 11 reorganization or exiting bankruptcy.
Receiver Certificates
Super-priority, secured funding for state and federal equity receiverships.
Frozen Customer Accounts
Customer accounts consisting of cash or goods in custody of a bankrupt organization.
Senior Secured Distressed Financing
Senior, secured loans outside of bankruptcy to help effectuate business reorganization.
Invoice Factoring
In Distressed Situations
Traditional factoring of invoices for companies in distress, factoring of bankruptcy claims, or voices of distressed companies.
Asset and Businesses Purchases in 363 Sales
Estate property, including entire businesses, in 363 sales, including operating as stalking horse.

GENERAL FAQS

WHY DID 507 CONTACT ME?

507 Capital specializes in providing liquidity solutions to company globally by purchasing bankruptcy claims, distressed debt, liens, judgements, distressed assets, and frozen accounts.

We provide bespoke financial solutions to individuals and businesses who do not want, or cannot, own illiquid assets and receivables in unusual situations and offer creditors an opportunity to sell their receivables (claims) for an immediate cash settlement.

 

WHY SELL YOUR CLAIM?

There are several reasons you may wish to sell:

  1. Immediate Cash Payment – you may wish to sell your claim for an immediate cash injection to spend elsewhere.
  2. We take the risk and hassle out of the process – The bankruptcy process can be complex, uncertain and take many years.
  3. Time and money saved – the process can be complex but also can be expensive. Managing a claim accrue a lot of legal and administrative costs.
  4. No surprises – each case and claim faces an uncertain outcome. Both in terms of length of the process and value of your claim.
  5. Trade claims are for unpaid sales – this means your business booked revenue at the time of sale, but has not been paid. Sales are one factor that determine taxes due at the end of the year. You could be paying tax on the revenue corresponding to your claim, even though you have not been paid.

 

WHY DOES 507 WANT TO BUY THE CLAIM?

We manage long-term capital specifically dedicated for buying and servicing bankruptcy claims. By aggregating claims we earn a profit by lowering the cost of administering the claims we buy. While you can keep hold of your claim to potentially recover for a greater distribution, many customers choose to sell to avoid any risk, time, hassle, and legal fees.

 

WHAT’S THE PROCESS?

Selling your claim is a fairly straight forward process consisting of two steps.

  1. Review and signing of a claim sales agreement. The sales agreement identifies the claim, price, and case. It also identifies the terms and conditions of the sale. 507 Capital uses a very simple sales agreement.
  2. Once the contract is signed by both the seller and 507 Capital, we will submit for payment and file the transfer with the corresponding bankruptcy court. Payment is received typically within two business days and we handle all the administrative tasks of transferring the claim.

 

HOW SOON WILL I BE PAID AND HOW?

For many claims the process from price agreement to receiving funds can be as quick as one day and almost always within two business days for sellers who choose to receive their payment by wire transfer.

We can also process payment by mailing a check, there are no hidden fees or other costs- we will send the full amount specified in our contract.

 

WHAT ARE THE RISKS?

Our customers often ask us for an explanation of the risks involved with selling their claim and how to mitigate them.

The primary risk to the seller corresponds to payment and the primary risk to 507 is purchasing a valid claim. These highly important risks are addressed in the sales contract. The seller has an enforceable right to payment under the contract and New York law, as does 507 have an enforceable right to transfer once the contract is signed. 507 Capital only reserves the right to reverse the sale of the claim is not really a claim (for example, if the goods or services were never really provided to the debtor). Other hazards of owning the claim 507 accepts responsibility for.

Payments are processed within two business days. If payment was not received the seller has 21 days to object to the transfer under Rule 3001(3)(2) of the Federal Rules of Bankruptcy Procedure. This protects the seller much like escrow. This would allow the seller to unwind the transfer for non-payment.

 

ABOUT US

The team at 507 Capital provides a high-touch bankruptcy claim service. We are committed to communicating transparently about pricing, process, and the cases we work on. We believe in creating bespoke solutions for our customers and will work with you collaboratively during
the process.

We are happy to speak in person and discuss your questions and claims further. brian@507capital.com