Where do bankrupt companies sell their assets?
Jan Meriss Alfonso Assistant at Ascent Law LLC Bankruptcy is a common process used by companies in financial trouble to liquidate their assets. The process has numerous benefits and is the preferred solution for companies seeking to sell assets at a lower price. Buyers can usually get better prices on these assets than they would have otherwise. Disadvantages of Chapter 7 bankruptcy A bankruptcy trustee takes over your business operations after you file for Chapter 7. This can be a good or a bad thing, depending on the circumstances. The trustee is in charge of determining the fate of your business assets and how creditors will be paid. You have no say in the sale price of your assets. While a bankruptcy trustee will sell your assets to pay creditors, they are not obligated to do so. If you receive less money than you owe, they may not be willing to work with you. Additionally, if you receive any debt forgiveness, this cash will be included in your income, which may increase your...