State:CA
I have a severance claim against my bankrupt employer (large Canadian Telco company). I recently received an unsolicited offer to sell my claim for 0.85 on the dollar. They are asking for a 6% fee and will withhold 30% taxes. They have promised payment with 10 business days. I've reviewed the contract and am concerned about any restitution or repayment by me if the claim amount is less than my selling price or if the withholding is more than 30%. It sounds as if they are taking no risk, and the only benefit I am getting is an early check.
Would like some general feedback on the practice of buying severance claims and how (if) they benefit the seller (me).
I have a severance claim against my bankrupt employer (large Canadian Telco company). I recently received an unsolicited offer to sell my claim for 0.85 on the dollar. They are asking for a 6% fee and will withhold 30% taxes. They have promised payment with 10 business days. I've reviewed the contract and am concerned about any restitution or repayment by me if the claim amount is less than my selling price or if the withholding is more than 30%. It sounds as if they are taking no risk, and the only benefit I am getting is an early check.
Would like some general feedback on the practice of buying severance claims and how (if) they benefit the seller (me).