The primary lenders of the Toys ‘R’ Us company recently decided to cancel a bankruptcy auction of the company’s brand name as well as other associated intellectual property. Instead, the lenders intend to revive the Toys ‘R’ Us brand name as well as the Babies ‘R’ Us brand name as part of an effort to open new branding companies. The lenders also intend to develop the company’s international presence. In stating their decision to cancel the auction, the lenders stated that the auction did not offer probable economic recovery to creditors.
A bankruptcy auction allows individuals the opportunity to place bids on various items that have been seized from the original owner. If you are navigating the bankruptcy process, it is best to obtain the assistance of an experienced bankruptcy attorney. The following are some important details about how bankruptcy auctions occur.
The Role of Bankruptcy Auctions
Chapter 7 bankruptcy involves a person eliminating debt to obtain a second chance at rebuilding his or her credit score. Those who file for bankruptcy often have to sacrifice their possessions, which occurs through an auction, so the proceeds can then be paid to collectors. While the property that is sold often includes houses or vehicles, anything of value can potentially be placed in a bankruptcy auction.
The Difference Between Bankruptcy Auctions and Foreclosure Sales
Both bankruptcy auctions and foreclosure sales are designed to make sure that you have the finances necessary to pay creditors. In foreclosure sales, however, the party that has an interest in your house receives the money from the auction. Bankruptcy auctions tend to be less common than foreclosure sales. One of the reasons these auctions are not common is that many people who are navigating the Chapter 7 bankruptcy process do not have many assets. Foreclosure sales, however, occur much more often. As a result, while many homebuyers are able to secure good financial deals on bank-owned homes, it is much less common for bankruptcy auctions to result in a person being able to raise a sufficient amount of money for creditors. Both processes are particularly complex, though, and it is often a wise idea to have the assistance of an experienced bankruptcy attorney.
Speak with an Experienced Bankruptcy Lawyer Today
If you are navigating the Chapter 7 bankruptcy process and there is a potential that your possessions will be sold at auction, you should not hesitate to speak with an experienced attorney. A bankruptcy attorney understands that you might have to forfeit treasured possessions during this process, but can help you navigate matters so that they resolve in the best possible manner. If you have questions about the bankruptcy process, you should not hesitate to speak with an experienced bankruptcy lawyer. At the Adam Law Group, we have helped numerous people navigate the bankruptcy process to obtain positive results. Contact our law office today to schedule an initial free consultation during which time we will discuss your various available options.