Overview

Bankruptcy funding presents a host of opportunities for bankruptcy estate representatives, litigation trustees and their counsel seeking to maximize the value of litigation claims in a bankruptcy estate or litigation trust for the benefit of creditors and other stakeholders.

Bankruptcy estates and litigation trusts often lack the resources to pay for the high quality legal counsel needed to pursue the full value of claims. Our funding provides those resources. It also encourages counsel to offer services on contingency, a fee arrangement widely demanded by clients and generally accepted by bankruptcy judges. Counsel can now share the fee risk with Bentham.

Claims need no longer be abandoned or settled for pennies-on-the-dollar, but can be pursued on their merits to their best outcomes with funding. In addition, our funding can pay for costly pre-litigation or pre-confirmation claims analyses.

Finally, funding can provide a liquidity event for a bankruptcy estate or litigation trust on a successful or valuable litigation that is ongoing. This allows the estate or trust to bring new claims, pay other expenses or make distributions to creditors.




How Much Funding is Available?

Depending on the case, generally up to $20 million.

What are the Funding Requirements?

To be eligible for funding, the case must meet the following preliminary requirements:

  1. Funding requested must exceed $1,000,000.
  2. Value of the claim must exceed $10,000,000 (exclusive of punitive damages).
  3. Defendant must have a clear ability to pay.
  4. The litigation must have strong prospects of success.


What Types of Bankruptcy Claims Can Be Funded?

Avoidance Actions

Claims Held by Bankruptcy Estates and Litigation Trusts:

  • Commercial and IP litigation
  • Breach of fiduciary duty
  • Theft of corporate opportunities
  • Equitable subordination
  • Tax refund claims


Estate or Trust Expenses:

  • Pre-litigation and pre-confirmation investigations
  • Monetizing judgments to pay expenses, fund distributions or pursue additional claims


Benefits of Bankruptcy Funding

For Bankruptcy Estate Representatives and Litigation Trustees
Bentham's funding enables bankruptcy estate representatives and litigation trustees to access high-quality counsel and experts while reducing risk to creditors. The funding solutions that we offer to bankruptcy estate representatives and litigation trustees include:

  • Pre-litigation and pre-confirmation investigations
  • Working capital
  • Fees and costs funding
  • Monetizing appeals


For Law Firms

Bentham's funding helps law firms share risk with clients, positioning them to win more engagements and increase revenues and profits. The funding solutions that we offer to law firms include:

  • Full or reduced hourly fee funding
  • Risk sharing in single cases
  • Risk sharing in portfolios of cases


How Does the Process Work?

Contact us to provide basic information on the matter, the lawyers, and the court. After entering into a non-disclosure agreement, we will provide preliminary deal terms to you. Deal terms depend on case merits and estimated time to resolution (frequently 'stepping up' for longer cases). After conducting our due diligence, we execute a litigation funding agreement subject to any required bankruptcy court approval.

If you have a bankruptcy or litigation trust matter that meets our criteria, please contact us.