Bankruptcy Auctions - The Basics

Even in good economic times as well as bad, businesses and corporations run into financial difficulties

. Sometimes a vendor does not deliver raw material forcing you to lose a sale, your customer does not pay their bills for goods delivered or even you get priced out of the US market because of Chinese competition and their cheap labor. For any number of reasons small businesses and corporations who run at the very edge of their financial limits can get pushed over into insolvency. Especially with these economic times since the financial meltdown of 2008, many businesses have failed or about to fail.If the business or corporation cannot continue financially, chances are they will file for bankruptcy and their assets will be seized and eventually sold to the highest bidder.

In many instances assets are appraised and sold at auction to the highest bidder to satisfy creditors and shareholders. Usually, when business assets are sold at bankruptcy auctions, they usually sell for pennies on the dollar. As a result of this urgency to dispose of assets in a timely fashion, brings opportunity to other businesses and even individuals to profit from the demise of a business entity. Usually the adage in business is, there are always opportunities available even during a bankruptcy. Per U. S. bankruptcy laws,the sale of business assets requires a court order. Generally, when a business files for bankruptcy a court appointed trustee will be put in charge of liquidating the assets of the business. Their goal is to achieve the highest possible price for the asset, but in many instances, time is of the essence and assets cannot be sold individually or marketed properly to achieve top dollar. In most cases, the liquidation trustee has at most 30 days to dispose of assets. In most cases the court appointed liquidation trustee would engage the services of an asset liquidation firm. Public notice will be made in newspapers, websites, various publications etc. that an auction will be held soon for disposition of assets. Per bankruptcy procedures, the assets must be made available for public viewing. These assets can be examined within this 30 day viewing period and a purchasing strategy can be developed by the potential buyer. This open and above board policy of making assets available for viewing to the general public, allows everyone a fair shot for the purchase of the assets. All that is needed is either a cashiers check or cash to purchase and take delivery of the asset.

Many small specialized businesses thrive in lean economic times by purchasing assets at bankruptcy and reselling them individually to other businesses at a profit. A vast majority of businesses do not have the time or manpower to research and make purchases at bankruptcy auctions and hence, a opportunity exists to resell items bought in bankruptcy. Another favorite adage in business is, buy low - sell high. Bankruptcy auctions help you achieve this particular strategy.

We at Digital Auction have a comprehensive list of bankrutcy auction companies for your perusal. They have weathered the economic downturn and have been in business for a number of years. They can handle all of your bankruptcy auction needs - whatever they may be.

by: Harry Bilings

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