Assignment of a claim involves transferring the ownership of a claim to someone else. When you submit a request to assign your claim, you or your firm are requesting that the Receiver’s records for your claim be permanently changed to show that someone else is the new owner of the title, interest and rights to your claim, including any future mailings and payments if they occur.
Some companies specialize in purchasing claims and interests in distressed situations, specifically bankruptcies, liquidations and insolvent estates. These companies communicate with persons or entities which have filed a claim in these receivership estates offering to purchase the claimant’s interest in their claim. The decision of whether to accept or not to accept the offer is entirely that of the claimant. The Receiver does not instruct, offer advice or make any comments to influence the claimant’s decision.
Financial information regarding claims distributions and payments published on the Receiver’s website can assist the claimant in making an independent and informed decision regarding any sale of the claim. The purchase price being offered in exchange for the assignment may differ from the amount ultimately distributed in the receivership proceeding with respect to the claim.
Once the claim has been properly assigned, the Receiver’s records will be permanently changed and the claimant will no longer have any title, interest or rights to the claim including future mailings and distributions if they occur. The forms required to assign the claim are available here.