My brokerage firm is about to declare bankruptcy, but I don't want to go through a tedious liquidation process. Is there a way to avoid the SIPA liquidation?
Yes, the SIPC can elect to institute a direct payment process in lieu of a liquidation proceeding under the SIPA. Under this process, no SIPC trustee is employed; the SIPC deals directly with the debtor brokerage's customers (account holders).
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Yes, the SIPC can elect to institute a direct payment process in lieu of a liquidation proceeding under the SIPA. Under this process, no SIPC trustee is employed; the SIPC deals directly with the debtor brokerage's customers (account holders).
