RunwayOffer FAQ: data sales in Chapter 11, Subchapter V and Chapter 7

Generally yes. Data the debtor owns is property of the estate under Section 541. A debtor in possession can use or sell estate property in the ordinary course, but a sale or license outside the ordinary course, which a data transaction usually is, requires notice and a hearing under Section 363(b). In practice your counsel files a motion and the court approves the transaction if it reflects sound business judgment and a fair process. How court approval works

For US companies with real operating history, our illustrative range is up to $50K to $1M+. The amount depends on the systems included, years of history, how specialized the work is, how much must be excluded for contract or privacy reasons, and buyer demand at the time. We never promise a price; the number comes from competing bids and the court's approval.

AI developers that train and evaluate models on realistic business work. They want the record of how work gets done (workflows, decisions, handoffs), not the identities of the people involved, which is why everything is de-identified before delivery. We don't name buyers publicly; you and, where required, the court will know the buyer before anything closes.

Section 363(b)(1) restricts selling personally identifiable information about individuals if the debtor's privacy policy prohibited transferring it. In that case the sale generally must be consistent with the policy, or the court must appoint a consumer privacy ombudsman under Section 332 and find the sale appropriate. Most of what AI developers want is operational and can be de-identified or excluded, but we analyze the privacy policy and data map with your counsel either way. Privacy guides

Usually the DIP or pre-petition lender's consent matters in practice. Lenders often hold liens on general intangibles, and liens typically attach to sale proceeds. Use of those proceeds is governed by the DIP and cash-collateral orders. We coordinate with the lender early so the deal fits the budget and milestones instead of becoming a fight at the hearing.

A straightforward data sale can sometimes be marketed in two to three weeks and heard on regular notice, which is generally 21 days under Bankruptcy Rule 2002. Objections, an ombudsman appointment, or a busy docket can extend that. We give you a realistic timeline after intake and never promise a closing date or a ruling.

No upfront cost and no retainer. Any fee is paid only from a closed transaction, disclosed in the sale papers, and subject to court approval where required, including any retention application your counsel decides is needed.

The Section 363 rules are the same, but the case moves faster: a plan is generally due within 90 days of the order for relief, a Subchapter V trustee is appointed, and there is usually no creditors' committee. Cash from a data sale can help fund plan payments or a feasibility showing. Work with your counsel and the Subchapter V trustee early.

Yes. A Chapter 7 trustee can sell estate property, including data, under Section 363 after notice and a hearing. We value the data, handle de-identification and buyer outreach at the trustee's direction, and supply what the trustee's counsel needs for the sale motion. The same privacy rules apply.

Possibly, and it can raise cash quickly. Pre-filing transactions should be at fair value and well documented, because transfers before a bankruptcy can later be reviewed as preferences or fraudulent transfers, and directors' duties sharpen near insolvency. Talk to restructuring counsel first; we'll work with them.

Usually not. The common structure is a non-exclusive license of a de-identified copy, so the company keeps its systems and records and keeps operating. If the business is later sold, the buyer of the business takes the systems subject to the license, which should be disclosed.

No. Everything on this site is general information. Bankruptcy outcomes depend on the facts, the court and the parties. Your bankruptcy counsel should decide whether and how to pursue a transaction and what to file.