|
|
Auction of the Assets of a Debtor in a Bankuptcy The U.S. Bankruptcy Code permits certain assets of the estate to be liquidated without court order if none of the parties in interest objects. (Note: The U.S. bankruptcy code normally requires court approval for selling any assets, including assets to be sold at auction.) The Code requires the trustee to give notice to all creditors of an intended sale or other disposition of property of the estate. Usually the trustee will give at least 10 days notice of the sale of real property. Unless a party in interest, such as a secured creditor, files an objection to the proposed sale and requests a hearing, the trustee will proceed with the sale as outlined in the notice. One recent development involves the use of Internet auction sites to sell assets of bankrupt companies. On-line auctions allow anyone with Internet access to participate in the auction process, theoretically increasing the amount raised from the sale of the debtor's assets. Another advantage of online auctions is that the auction can run over an extended period of time - also increasing the possibility of maximizing recovery to the bankrupt company's creditors. Edited by Michael Dennis, author of "Credit and Collection Handbook" available at the NACM Bookstore. |
|
||||||
