Buy litigation-in-progress bankruptcy claims (preference recovery, fraudulent transfer) at 20–40% of face value.
Bankruptcy trustees pursue §547 preferential transfer recoveries and §548 fraudulent transfer clawbacks against parties who received payments/transfers in the 90-day (or 1-year for insiders) look-back period. Trustees will sell these unresolved claims at 20–40% of face value to specialty buyers who then prosecute. Returns can hit 3–5× on winners. Access via bankruptcy trustee auctions and claim brokers (ASM Capital, LiquidClaims). Requires litigation appetite and legal budget.
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Bankruptcy Code §363 lets you buy a distressed company's assets free-and-clear of liens, at deep discount, in 60–90 days.
Lend to a Chapter 11 debtor with super-priority priming lien — highest recovery, often equity conversion.
Buy unpaid property tax liens from counties (28 states) — earn statutory interest 8–24% + possible property acquisition.
Tax deed states auction the DEED itself (not lien) after redemption expires — buy property for delinquent taxes only.
Buy defaulted mortgage notes from banks/hedge funds at 30–60% of UPB — foreclose, modify, or DIL for equity.
Cheaper/faster alternative to Chapter 7 — buy assets of failing companies via ABC in 30–45 days.
Buy property/business assets from a court-appointed receiver — clean title, court-approved discount pricing.
Buy verified claims in bankruptcy or mass tort settlements at deep discount from claimants needing liquidity.