Can I write off a loss on an investment in a company that is still going through bankruptcy?

Here's the situation: I had purchased uninsured CDs/Notes in ABFS (American Business Financial Services) they are still going through bankruptcy proceedings (they declared bankruptcy in 2005). I expect to receive pennies on the dollar when it comes time for a settlement. Can I write any/all of my investment... show more Here's the situation: I had purchased uninsured CDs/Notes in ABFS (American Business Financial Services) they are still going through bankruptcy proceedings (they declared bankruptcy in 2005). I expect to receive pennies on the dollar when it comes time for a settlement. Can I write any/all of my investment off now, and then declare any settlement money as new income, or do I need to wait until the bankruptcy is settled, and I'll know exactly what my investment is now worth and how much I lost?
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