Distressed Assets & Bankruptcy strategies

10 plays in this category. Each one covers the mechanics, who it fits, and the estimated impact — then generates a deep dive against your own numbers.

• Distressed Assets & Bankruptcy

  §363 Sale (Buy Distressed Business Assets Free-and-Clear)

  Bankruptcy Code §363 lets you buy a distressed company's assets free-and-clear of liens, at deep discount, in 60–90 days.

  40–70% off market value + clean successor liability shield
• Distressed Assets & Bankruptcy

  DIP (Debtor-in-Possession) Financing (Priming Lien in Chapter 11)

  Lend to a Chapter 11 debtor with super-priority priming lien — highest recovery, often equity conversion.

  12–20%+ IRR + equity conversion optionality
• Distressed Assets & Bankruptcy

  Tax Lien Certificate Investing (Statutory Interest Rates 8–24%)

  Buy unpaid property tax liens from counties (28 states) — earn statutory interest 8–24% + possible property acquisition.

  8–24% guaranteed statutory return + property acquisition upside
• Distressed Assets & Bankruptcy

  Tax Deed Investing (Buy Property Outright — 22 States)

  Tax deed states auction the DEED itself (not lien) after redemption expires — buy property for delinquent taxes only.

  60–95% off market value on acquired property
• Distressed Assets & Bankruptcy

  Non-Performing Loan (NPL) Note Buying

  Buy defaulted mortgage notes from banks/hedge funds at 30–60% of UPB — foreclose, modify, or DIL for equity.

  40–100% IRR on modified notes / 30–70% discount to property acquisition
• Distressed Assets & Bankruptcy

  ABC (Assignment for Benefit of Creditors) — Buy Failed Companies

  Cheaper/faster alternative to Chapter 7 — buy assets of failing companies via ABC in 30–45 days.

  60–90% off pre-distress valuation
• Distressed Assets & Bankruptcy

  Receivership Sale (Court-Appointed Fiduciary Sales)

  Buy property/business assets from a court-appointed receiver — clean title, court-approved discount pricing.

  25–50% off market with court-cleaned title
• Distressed Assets & Bankruptcy

  §547 Preferential Transfer Purchase (Claim Buying)

  Buy litigation-in-progress bankruptcy claims (preference recovery, fraudulent transfer) at 20–40% of face value.

  150–400% IRR on winning claims
• Distressed Assets & Bankruptcy

  Mass Tort / Class Action Claim Buying

  Buy verified claims in bankruptcy or mass tort settlements at deep discount from claimants needing liquidity.

  40–150% IRR on typical claim purchases
• Distressed Assets & Bankruptcy

  Chapter 11 Workout Consulting (Sweat-Equity Path)

  Help a distressed business restructure through Ch11 in exchange for equity — sweat-equity turnaround play.

  20–50% equity in $2M–$50M business for time investment