[bruce@bdfunding.com]

Will anyone consider an open Chapter 11 that is nearing dischage?

[HeatherF]

Merchant Cash Group will offer funding for open Bk's but there is a cap on what we will fund.

[ADiamond]

Chapter 11's are not dismissed nor discharged, they are accepted and closed. Funding a company with an open bankruptcy is not smart.

[AndyYSCISOdept]

Yellowstone would look at it depending upon the circumstances surrounding it.

Email me

[Chambo]

Chapter 11's are not dismissed nor discharged, they are accepted and closed. Funding a company with an open bankruptcy is not smart.

the danger here is if the administrator on the BK finds out you are giving the merchant money that is legally allocated to the creditors. Both your company and the merchant could get in some legal hot water (there would be some serious "tortuous interference")

Totally not worth the risk

[ADiamond]

the danger here is if the administrator on the BK finds out you are giving the merchant money that is legally allocated to the creditors. Both your company and the merchant could get in some legal hot water (there would be some serious "tortuous interference")

Totally not worth the risk

Exactly, not only that.. they can also try to include the debt in the bankruptcy.

[JSL23]

Is there ever any extenuating circumstances? Example- a client filed Ch. 11 due to a divorce which would have given his ex half of the company, where she would have operated it side-by-side with him every day. The Merchant pays every month and has not lost any Vendors or Clients over it. All verifiable. Could someone get funded under those circumstances or something similar?

[Chambo]

Any funder could fund the merchant anytime. But under the Bankruptcy, the creditors are entitled to funds (which the merchant is stating before the court they do not have). Those "future sales" would be considered revenue due the creditors, not the merchant. You giving a business funds over the court designated creditors?

I wouldn't want to be on the wrong end of that.

[Chambo]

Is there ever any extenuating circumstances? Example- a client filed Ch. 11 due to a divorce which would have given his ex half of the company, where she would have operated it side-by-side with him every day. The Merchant pays every month and has not lost any Vendors or Clients over it. All verifiable. Could someone get funded under those circumstances or something similar?

You think the creditors give a rat's ass about "extenuating circumstances"? Do our funds care about extenuating circumstances when they are not getting paid?

[JSL23]

You think the creditors give a rat's ass about "extenuating circumstances"? Do our funds care about extenuating circumstances when they are not getting paid?

Of course not. What I'm asking is, is there any documentation or way to circumvent that aspect of it? I'm not a Bankruptcy expert, but isn't the creditor, in cases like these the court or his ex-wife? And if there is a specific dollar amount agreed upon that is paid, on time, every month? Do these factors lessen the risk and make it acceptable?

[acalways]

Will you still look at a file in Open Bankruptcy?

[BB_Cooper]

Typically, if the merchant is in Chapter 11, the BK Court would need to approve any funding of the merchant as a Debtor In Possession financing arrangement. Not sure how you get around the DIP Court required approval-

[KMSampson]

We will factor the merchant if they are a B2B company

[fundingsmbs]

the danger here is if the administrator on the BK finds out you are giving the merchant money that is legally allocated to the creditors. Both your company and the merchant could get in some legal hot water (there would be some serious "tortuous interference")

Totally not worth the risk

yeah but they do 1-3 mo terms so they get in and out quick. only reason they do it. but yes above is true