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Guide

Selling data assets in bankruptcy

By SourceX Editorial · Updated

Draft under editorial review.

Short answer

In a U.S. bankruptcy, data can be sold as an asset, usually with court approval. If the company promised customers it would not sell personal information, the court may appoint a consumer privacy ombudsman. Counsel leads this process.

How it works at a glance

  1. 01

    Supply

  2. 02

    Rights

  3. 03

    Preparation

  4. 04

    Approval

  5. 05

    Delivery

What to know#

  • Sales typically need court approval
  • Privacy promises made to customers can limit a sale
  • A consumer privacy ombudsman may be appointed (11 U.S.C. § 332)
  • Licensing a de-identified copy can be simpler than selling raw data

What to check#

  • Involve bankruptcy counsel first
  • Gather privacy policies from the relevant years
  • List systems and record types available

How SourceX handles it#

  • We assess fit before you share anything.
  • Rights and laws are reviewed deal by deal with counsel.
  • Personal details are removed and checked.
  • Your company approves every release.

Quick check#

Quick check
QuestionIf yesIf no
Are your rights clear?Move to preparationReview contracts first
Can you export the records?Plan the exportWe'll guide alternatives

Check your fit

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Full-time employees at peak headcount (excluding contractors)

Frequently asked questions

Can a bankrupt company license its data?

It may, with the court and trustee's involvement. SourceX would work alongside counsel.

Is this legal advice?

No. It's general guidance; your counsel should review your deal.

Related

General information, not legal advice. Editorial policy.

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