Trading procedures and sale of assets in bankruptcy

At the liquidation stage of bankruptcy, the most significant procedure is sale of debtor’s property at auction. The main goal is to maximize replenishment of bankruptcy assets for settlements with creditors.

Sale of the bankrupt’s property allows to replenish the bankruptcy estate in short time and is accompanied by discounting and attracting a large scope of potential buyers. Various property is put up for auction: from low cost to luxury cars, from small apartments to gorgeous huge mansions, from small claims to multibillion-dollar bonds.

In this regard, investments in assets sold at auction have become quite popular among both enthusiasts and professional investors.

The auction itself is held in several stages, which are strictly regulated. First, a message about the property being sold with its identifying features is published, so that everyone who wants to get acquainted with this property has time and opportunity to do so. After the deadline for reviewing and submitting applications, auction is held in electronic form, the results of which are used by auction organizer to form a protocol. If the winner is not identified, repeated auction is held, and if it does not give a result – then Dutch auction is held.