About Us
Our Story
Like many others, we were unwilling creditors during the FTX bankruptcy. As the process unfolded around us, we hired expensive lawyers to ensure we were doing everything possible to recover our money. Ultimately, we learned that filing a proof of claim and waiting was all we could do. $10,000 in legal fees was too much for a bit of peace of mind. And we were surely not the first to learn that particular lesson the hard way.The Bankruptcy Landscape
Like us, most unsecured creditors are thrust into bankruptcy proceedings against their will. Many are left feeling overwhelmed, confused, and isolated. We dug a little deeper, and it soon became clear why: everyone else does this for a living. Debtors choose to file for bankruptcy in the first place, have time to prepare, and usually have good legal representation. Law firms are bankruptcy experts who provide vital services, but they make money throughout the process. Institutional investors use their vast resources to identify opportunities and make a profit. Courts aim to be fair, but that can take time. The press is interested in headlines and an inside scoop. So, where do unsecured creditors fit in?Why Unsecured Creditors Struggle
Unsecured creditors typically rank last in the payment hierarchy, preceded by secured creditors, bondholders, and other priority claims. Unfortunately, there's not much they can do about that. Being low on the totem pole is not the only drawback.- Lack of Representation Unlike debtors or secured creditors, who often have dedicated legal teams or committees advocating solely for their interests, individual unsecured creditors usually do not have the same level of professional representation unless they organize, like through Ad Hoc Committees.
- Bankruptcy is Long Resolving a bankruptcy case can take months or even years. Creditors are often left waiting through protracted negotiations, reorganization plans, and court hearings. Larger organizations are better equipped to deal with drawn-out proceedings than individuals.
- Limited Transparency Debtors and more prominent institutional players often have access to real-time data, financial reports, and legal analysis that are not as readily available to unsecured creditors. Many creditors also don't have the financial know-how to make sense of it.
- Dependency on Professional Fees Legal fees, financial advisors, and other professionals are paid out of the estate, cutting into the total value available for distribution to creditors.
- Emotional and Stress Factors Unsecured creditors, many of whom may be individuals or small businesses, often have a personal stake in the bankruptcy—they may be personally affected or watching their life savings or business success slip away.
It's Actually Not That Bad
Here's the thing—not everybody is out to get you. The other parties in bankruptcy are just better prepared because they've done this before. But that doesn't mean you don't have advantages of your own. For one, you're not alone. Many creditors, including institutional investors, are in the same boat as you, and they're creditors, too. By law, every creditor in the same class must get the same return, so banding together makes sense. When you work as a group, you can pool your resources and make a more significant impact. Then there's your vote. In bankruptcy, your vote matters—companies need creditor approval to exit bankruptcy, and your choice can directly influence when and how much you recover. With the right tools and a little strategy, you can make your voice heard and maximize your claim.Our Mission
- Communication Make it easy for creditors to communicate and organize. When they work together, creditors have far more influence than they realize. We want to make it easy for creditors to connect, share ideas, and take collective action.
- Information Deliver timely bankruptcy data, news and educational content, empowering creditors to make confident decisions about their claims.
- Options We want to help creditors explore their ideal outcomes and give them the tools—access to experienced legal professionals, decision-making frameworks, or resources—to achieve them.