Why Creditors Choose to Sell Unpaid Bankruptcy or Insolvency Debts

New York financial district skyline illuminated at dusk

There are many reasons why creditors choose to sell their debts against bankrupt or insolvent companies:

  • They benefit from receiving payment immediately for an asset that has been written-down.
  • The process is simple and removes complications and requirements that arise from being a creditor
  • They avoid the risks and costs associated with the bankruptcy process.
  • They avoid potentially having to account for the claim on an ongoing basis.

A company’s bankruptcy process can often last many years.

Over time, companies evolve and change and, in the process, important documentation safeguarding the validity of their unpaid debt is often lost or destroyed by accident.  By selling your unpaid debt now, you can realise value and remove risk.

This image features the entrance to a courthouse. The photo includes steps leading to a grand entrance with enormous pillars.

Look Through Some Of Our Services

Click on any of the links below to read more about that service.

  • Ornate railings in the design of a Fleur di Lis in black and white

    Fund Interests

    As well as bankruptcy claims, Clearwater provides liquidity to limited partners (LPs) who are looking to exit early from their investments in private equity and other fund structures.

  • Ornate railings in the design of a Fleur di Lis in black and white

    Delisted Securities

    Clearwater is also an active acquirer of unlisted shares in companies which are hard to monetise due to lack of interest or attention from larger market players.

  • This image features the entrance to a courthouse. The photo includes steps leading to a grand entrance with enormous pillars.

    Why Sell Your Unpaid Debt

    There are many reasons why creditors choose to sell their debts against bankrupt or insolvent companies.

  • This image features the entrance to a courthouse. The photo includes steps leading to a grand entrance with enormous pillars.

    How To Sell An Unpaid Debt

    If you have received a communication from Clearwater, it is because you are listed in public filings held with the court for a specific bankruptcy or insolvency case that we are involved in.