Bankruptcy auctions are a result of individuals filing for bankruptcy when they are unable to pay creditors. There are different kinds of bankruptcy depending on the type and amount of debt incurred, including liquidation, adjustments of debts, and reorganization. Liquidation bankruptcy requires the sale of assets to pay creditors, and this is where bankruptcy auction companies step in. The three best bankruptcy auction companies include 363 Bankruptcy Auctions, True Blue Auctions, and Erkelens & Olson Auction Company. Read on to discover more about bankruptcy auction companies.
Most bankruptcy auction companies require successful bidders to pay in full and immediately after the auction. Many companies gather pertinent information about the bidder - such as name, address, phone number, credit card information, and drivers license number - upon registration.
Some of the assets sold through these auctions include vehicles, boats, houses, art, and almost anything else of value.
Auction houses display the property to be sold and encourage bidders to take time to inspect the property before the auction begins.
All sales are final with most auction houses. It is the bidder’s responsibility to inspect items before bidding begins.
Online bankruptcy auctions are rare. Most auctions of this type are held in auction houses that require the bidder to be present throughout the bidding process.
When cash is needed to pay creditors, foreclosure sales are held so that the mortgage holder receives any money made from the sale. Bankruptcy auctions are used to sell debtors’ possessions to pay creditors.
When bankruptcy auction houses state that items are as is/where is, this means that there are no guarantees on the condition of the items and that bidders are responsible to remove items they have won.
Generally, bankruptcy auction companies accept all major credit cards, cash, and certified funds.