Declaring bankruptcy is one of the toughest financial decisions many people faced with unmanageable debts are forced to make. While this step may give you a clean start in certain ways, your non-exempt assets become the property of the courts. This leaves you with only exempt property like your house or car. There are various bankruptcy chapters and depending on the one you choose to use, you may end up with very little.
When you file say for example for a chapter 7 bankruptcy, your assets are taken over by a court appointed trustee. This trustee has the jurisdiction to sell off your assets to repay what you owe the creditors. This is where bankruptcy sale comes in. These sorts of sales are there to notify potential buyers of various bankruptcy assets that are being disposed off. They also have the intention to sell them off as quickly and as cheaply as possible. If your bankruptcy assets are being liquidated you will need the court’s approval before you can sell to any third party.
The process involved in a bankruptcy sale is first a notice is given to the creditors and other parties that have a vested interest in the particular bankruptcy case. This notice is prepared by a professional. It is from the court to the parties involved in the case. Since advertising of a bankruptcy sale is quite expensive and most bankruptcy estates are, there is no public awareness that is done.
Most bankruptcy sales are “as is with no warranties implied or stated”. This simply translates to what you see is what you get. When the sale is complete, the buyer cannot return the asset and get a refund if it does not meet his expectations. They may then contact the professional in charge of the sale. If they are still unhappy with the sale, they may seek relief at the bankruptcy court. Most bankruptcy courts rule in favor of the professional since bankruptcy sales have no warranties.
Mercy Maranga writes content on Finance and Debt Management. Visit her site here for more information on Finance and how to effectively Manage your debts.
Bankruptcy
