[Funder Mark]

I had a deal submitted today, where the client is in the middle of an open bankruptcy, and has a position from Capital Stack in there. How does that make sense? Or am I missing something here.

[HonestPerson]

That was my deal lol.
He actually got a few offers elsewhere. I guess lenders will take a chance since its personal bankruptcy filed in 2011 and banks look pretty solid.

[Chambo]

Until the court administrator finds out and comes to you guys demanding payment

[Zach]

Try MFS

[anydealfunded]

I think it's illegal to lend to a bankruptcy unless the judge approves it?? I'm not a lawyer but I think I heard that somewhere.

[BB_Cooper]

The distinction may be that the merchant is personally still completing a 5 year Ch 13 plan, but his business entity is not part of the bankruptcy proceedings. But if the business is subject to the bankruptcy it would be debtor in possession financing the Court would need to approve-

[AndyYSCISOdept]

Actually to my knowledge you might be right. I have a few files that have personal CH 13s and we are moving forward with funding.

[MFS-Global]

There are differences in the BK's but we can do it even if its CH 7, 11, 13 w.e lol gotta have good banks though

[Sachip24]

i was under the impression if the bankruptcy is still open merchant can roll in the advance into the bankruptcy and not have to pay it back. still fairly new to all this I could be wrong.

[Lexgroup]

With unsecured and unperfected contracts you are taking a huge risk funding someone with an open BK; you are last in line to get paid if you even get paid at all.

[ADiamond]

I had a deal submitted today, where the client is in the middle of an open bankruptcy, and has a position from Capital Stack in there. How does that make sense? Or am I missing something here.

capital stack is a platform for lenders, doesn't necessarily mean capital stack funded the deal. that being said, every deal is conditional.

[JSL23]

I am wondering about this myself; I got a file last week where the Merchant owes just over $100,000 between 3 advances and with his monthly deposits/average balance/etc. he is at the point where I could usually get it consolidated. The problem is he had filed a Personal Bankruptcy in 2015.

My initial reply was how could he have been funded 3 TIMES, it makes no sense-the answer was it was filed in 2015 but not approved until the last couple of weeks. It was due to some kind of "mess up"(not his fault of course) with his Federal Taxes. I've always been under the impression that these were impossible to fund (except maybe a garbage 4th position 1.49 40 day term or similar trash). Who, if anyone will make an exception? I am not sure if it is Ch. 7 or Ch. 13 (I'd guess it was a Chapter 7 but am waiting on confirmation).

[aredmond]

What companies are funding personal bankruptcies?

[Chambo]

try mfs

or mcg

[mcaguru]

Always try Cresthill...We have over a dozen salaried in the UW department looking to make offers....we are running on a 3 hour reply on submissions today....

[Funder Mark]

Always try Cresthill...We have over a dozen salaried in the UW department looking to make offers....we are running on a 3 hour reply on submissions today....

You forgot to mention the double digit commissions...

[Chambo]

Always try Cresthill...We have over a dozen salaried in the UW department looking to make offers....we are running on a 3 hour reply on submissions today....

So you are saying you guys fund deals in open BK?