The process of selling a creditor claim to ClaimCloud can be completed in one or two business days if the creditor has an adjudicated claim. The process can take longer if the claim has not yet been reviewed by the administrator or liquidator.
AGREE PURCHASE PRICE
Creditors considering selling their claim should contact ClaimCloud to obtain a price for their claim. If the creditor agrees to the purchase price ClaimCloud offers to pay, we proceed. If not, creditors should check back in with ClaimCloud from time to time, as pricing may change in response to developments in the insolvency.
PROVIDE PROOF OF DEBT
There are two scenarios to consider:
1) If the creditor has lodged a Proof of Debt (‘POD’) form with the administrator or liquidator and the POD has been adjudicated, ClaimCloud will request the creditor provide a copy of that POD and the adjudication
2) If the creditor has not lodged a POD with the administrator or liquidator, or the POD has not yet been adjudicated, ClaimCloud will ask the creditor to share the documentation supporting their claim and (with the creditor’s approval) ask the administrator or liquidator to adjudicate the claim
REVIEW & SIGN ASSIGNMENT DEED
Once the purchase price and proof of debt are established, ClaimCloud will provide a draft of the Assignment Deed, which is the document that sets out the agreement between the creditor and ClaimCloud.
The creditor should obtain independent professional advice before executing the Assignment Deed.
AUSTRAC OBLIGATIONS
Before making payment, ClaimCloud is required to sight government-issued identification for the creditor (or major shareholders of the creditor) under its Anti Money-Laundering/Counter-Terrorism Financing program.
RECEIVE PAYMENT
ClaimCloud sends payment of the purchase price to the creditor’s nominated bank account after conducting a ‘call-back’ with the creditor to confirm the payment instructions.
CLAIM IS ASSIGNED
After the creditor receives payment of the purchase price, the creditor is required to send a letter to the administrator or liquidator, confirming that they have now assigned their claim to ClaimCloud. ClaimCloud can assist with this step, and once completed, concludes the transaction.
Ownership of the claim is assigned from the creditor to ClaimCloud only after the creditor has received payment of the purchase price.