Using Chapter 11 to Sell Assets

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Most of us don’t have a $1 million Marilyn Monroe dress available to sell to generate cash. However, many individuals and businesses do have assets which they can bring a good price if the sale is properly managed.

In a Chapter 7 case, the bankruptcy trustee will make an effort to sell valuable property for a good price, but buyers know that trustees are interested in a relatively quick liquidation. In the right circumstances, a Chapter 11 case can give you an opportunity to sell property for a better price. These may include:

  • assets that require a longer marketing period;
  • assets that derive additional value from the continued operation of a business; or
  • assets best sold to a market in which you have a special advantage, either from your business contacts or your connection to the asset.

If you are considering bankruptcy and have assets which may bring more value than could be obtained in a standard liquidation sale, you should consult with an attorney who handles Chapter 11 cases to determine whether it makes sense to liquidate some or all of your assets though a Chapter 11 bankruptcy case. For a free consultation, call (480) 719-1152.

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