Glossary
Common terms used in bankruptcy claim purchases.
Assignment of Claim
A legal transfer of a creditor's right to receive payment from a bankruptcy estate to another party (the buyer). When you sell your claim, you "assign" it to the purchaser.
Bankruptcy Estate
All of the debtor's assets and property at the time of filing for bankruptcy. The estate is administered by a trustee or the debtor-in-possession to pay creditors.
Chapter 11
A type of bankruptcy that allows a business to reorganize while continuing operations. Creditors may receive partial payment over time as the company restructures its debts.
Claim
A right to payment from the debtor. If a company owes you money and files for bankruptcy, you have a "claim" against that company for the amount owed.
Claims Agent
A third party appointed by the bankruptcy court to manage creditor communications, maintain the claims register, and process proofs of claim. Eterna Claims Group is not a claims agent.
Creditor
A person or business to whom the debtor owes money. Trade creditors are typically vendors, suppliers, or service providers who are owed for goods or services provided before the bankruptcy filing.
Debtor
The company or individual that has filed for bankruptcy protection. The debtor owes money to its creditors.
Distribution
Payment made to creditors from the bankruptcy estate. Distributions typically occur after a reorganization plan is confirmed or when assets are liquidated.
Proof of Claim
A formal document filed with the bankruptcy court that establishes a creditor's right to receive payment. It includes details about the amount owed and the basis for the claim.
Reference ID (Claim Reference ID)
A unique identifier assigned by Eterna Claims Group to track your specific claim inquiry. It appears on your letter and is used to access the secure portal. Format: ECG-XXXX.
Schedule (Bankruptcy Schedule)
Official documents filed by the debtor listing assets, liabilities, and creditors. Schedules are public records and are how we identify potential creditors to contact.
Trade Creditor
A creditor whose claim arises from the ordinary course of business—typically vendors, suppliers, contractors, or service providers who provided goods or services to the debtor.
Unsecured Claim
A claim that is not backed by collateral. Most trade creditor claims are unsecured, meaning they are paid after secured creditors (like banks with liens) in the bankruptcy process.
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