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"Race to the Courthouse" -
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Selling of Assets by the Debtor or Trustee Many times, there are no bidders other than the foreclosing or selling party, who will simply put in a credit bid and no new cash. A bankruptcy filing allows these same assets to be sold by the debtor or trustee, over a reasonable period of time, and with ample notice to possible interested parties. This can result in a higher sales price for the assets.
Business Assets
Also, business
assets can be sold in bulk and as a going concern, which generally
will trigger a higher sales price from the right buyer. As a general
rule, assets sold at bankruptcy sales do not have issues with title,
because, for instance, there is no requirement that such sales comply
with state bulk transfer laws.
Written by Henry Rendler | ![]() | ![]() ![]() ![]() ![]() ![]() ![]() ![]() - Automatic Stay - Avoiding Powers - Lien-stripping - Race to the Courthouse ![]() ![]() ![]() - Bankruptcy Estate - Federal - Homestead - Planning ![]() ![]() ![]() ![]() ![]() - Consequences - Criminal Fraud - Prosecution - Reporting Fraud ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() What You Should Know |