When trustees receive property, how do they liquidate it in order to pay creditors? Some kind of government auction? Just wondering since I've never really come across such a thing. I know that the IRS will auction seized property as will law enforcement agencies, etc... Just curious.
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They typically contract out to have it auctioned off.
As a side note, that process costs them money so they take that into account when determining the value of an asset. They can make more money if they offer it to the filer, which seems to be more common.
Any experience on this you can share? -
With me, I had about $2.5K of stuff plus $5K of home equity. I negotiated that down to $5K total, and the trustee accepted it. I had a lot of items that I put down a very low value on, and had no problem having o buy them back at that price. (I had a number of the same type of items, and I used the fact I had uncovered while researching that of an item of this type sold for $X at an auction, even though I know it would cost be $X * 10 or more to buy that item in good condition, and it's the type of item that only true collectors would know the value, and that value would depend on how well the item worked.) To my surprise, my stuff was still officially auctioned off in total at the hearing in front of the BK judge. Since no one outbid me there (!), my trustee used my offer to buy my stuff back.Comment
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