Legal Question in Bankruptcy in Pennsylvania

Advanta Corp. has declared chapter 11 bankruptcy. I have an investment note that has stopped paying interest and the principal is in jeopardy.

Prime Shares Co. is interested in buying this note, offering to purchase at 10% of the value.

Are the prospects of a company declaring bankruptcy returning to some sort of normalcy and honoring their commitments worth waiting for? Or, take the loss and try to salvage something, even if it is only 10%.

Thank you.


Asked on 12/17/09, 8:22 am

1 Answer from Attorneys

Generally the offer to buy your claim is made a few percentage points less than the buyer thinks it eventually will receive from the bankruptcy debtor. You would be giving up some of your expected recovery now to eliminate the risk and delay.

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Answered on 12/22/09, 3:30 pm


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