Bankruptcy auctions – stages and stages of sale of bankrupt assets and debtors + TOP-5 electronic platforms for bankruptcy
Today we will talk about the auction for bankruptcy, the sale of property owned by the bankruptcy and the debtor, as well as what bankruptcy auctions are and how to participate in them.
From this article you will learn:
- What is a bankruptcy auction – characteristics;
- How to bid and what auctions for bankruptcy (trade floors) exist;
- What can be sold at auction and how to participate in electronic auctions;
- How to buy property at a bankruptcy auction;
- How to make money from buying property through auctions;
At the end of the article are answers to frequently asked questions on this topic.
The article will be useful to those who want to participate in the bankruptcy auction, as well as to those who are simply interested in this topic. Read more about the bankruptcy bid now!
About bankruptcy bidding: what it is and in which stages / stages you need to go through to bid, which bankruptcy assets and debtors are being sold at the bankruptcy auction – read more about this and much more
1. Characteristics of the bankruptcy auction – scheme of sale of assets of the bankrupt and the debtor
An important phase of bankruptcy proceedings is the sale (sale) of property belonging to the debtor. It is one of the last stages of the procedure.
The sale of property enables it to partially, and in some cases completely satisfy all the requirements of creditors.
The sale of all types of bankrupt assets and debtors can be done according to several schemes:
- In tenders, which are understood as open auctions . Everyone is welcome to bid. However, there are exceptions. Participation in open auctions is limited if assets that do not have free circulation, such as weapons and jewelry, are put up for sale.
- When selling property that has value (cultural or historical), as well as cultural and historical heritage monuments, use competitions . It is mandatory that tenders should provide security, but at the same time should provide free access to the subject of sale.
In the case of an auction, the winner is the participant who will offer the highest price. The winner of the competition in accordance with Article 447, paragraph 4 of the Civil Code is the participant who guarantees that he will meet his conditions.
Bidding is done through electronic platforms. They can participate in natural and legal persons. To do this, you must first register at the place where the auction will take place.
|Normative act||Number and article||What a government|
|Federal Law “On Insolvency (Bankruptcy)”||FZ-127Article 28, 110-111||Basic norms for conducting auctions for the sale of debtor’s property|
|Order of the Ministry of Economic Development||Br. 54, published 15.15.2010||The process of selling property through open auctions|
|Electronic market rules||–||Features, as well as bidding conditions on a separate platform|
2. What are bankruptcy auctions – definition and meaning of the concept
Bankruptcy auction is an electronic bidding system .
Its main tasks are to organize tenders and subsequently during their application for the sale of property belonging to the debtor.
However, such a judgment is fundamentally wrong .
The electronic bidding arrangement is completely transparent . If any participant suspects the arbitrator of unfair performance of duties, he shall have the right to lodge an appropriate complaint.
We wrote in more detail about the bankruptcy procedure of a legal entity in the previous material.
However, after the entry into force on October 1, 2015, the Law on Bankruptcy of Individuals may also sell the property of private persons. The above-mentioned law sets out the procedure for conducting the relevant tenders.
Today, due to the inability to pay debts, individuals can get lost by selling property at auction housing , motor vehicles , suburbs , land and other property .
Once the law comes into force, individuals are increasingly opting for bankruptcy. We wrote about how to report bankruptcy to individuals and individual entrepreneurs in a separate article.
Most often, they act as debtors for various loans – unsuitable for a larger amount, mortgage, car loan.
Organizations going through bankruptcy can fall into the same situation. For example, if the leasing of cars is to legal entities, the leasing company has the right to take over the property under the contract, and in some circumstances it will wait for the auction to sell the debtor’s property to be completed for payment under the lease.
We wrote about the details of the liquidation and bankruptcy of the LLC in a separate article
What are the conditions necessary for participation in auctions
3. Conditions for participation in the bankruptcy auction
In order to submit an offer for the sale of the debtor’s property, the applicant must meet a number of conditions .
Condition 1. Application for participation in the auction
First of all, it is necessary to apply for the auction .
This document determines the amount of money that the bidder must pay into the bank account of the organizer. The deposit is a guarantee the bidder meets the conditions of the auction, including the fact that in case of victory the subject of the auction will be redeemed.
Condition 2. Setting the initial price of the object
The initial price of the subject of the auction is determined by the board
or the assembly of creditors. or trustee appointed in accordance with the law.
Most often, her appointment takes place on the last working hours of the day preceding the auction.
3 stages of bankruptcy bidding (primary, repeated, public)
4. Main stages of bankruptcy bidding
The bankruptcy procedure is strictly regulated.
There are three (three) phases that form the basis of the auction.
Phase 1. Initial bidding
This is the initial stage of bidding. It is important to know that each next step lasts half an hour after the previous one.
Phase 2. Repetition of bids
If, for any reason, the initial bid is declared invalid, the bids are repeated. In this case, the initial cost is set at 10% lower.
Phase 3. Public bidding
If the auction is declared invalid in the first two phases, a public auction is held . Their main feature – a reduction in prices after predetermined periods of time.
Participants in such tenders have the opportunity to purchase property at a very low price. The maximum reduction can reach 99% . However, it is important to have time to complete the contract before the competition.
Why do we need and where to look for bankruptcy bidding What can I buy at the bankruptcy auction
5. Which assets of the bankruptcy and the debtor can be purchased at the bankruptcy auction
A huge list of property items is subject to sale at auctions. If you want, you can choose anything from this list.+
6. Bankruptcy auctions: TOP-5 electronic trading platforms
Bankruptcy trading takes place at various electronic locations. There are several most successful locations that sell property in bankruptcy.
Among the most popular websites used to conduct online auctions are the following:
1. Unified bankruptcy register
This database contains all available information on the tender as a result of the bankruptcy proceedings.
Official website of the service “Unified Federal Register of Bankruptcy Information”
The main advantage of this database is the prior publication of information about the upcoming sale of property . This page contains the most complete information.
Studying the register of items allows bidders to collect the maximum necessary data and, as a result, more careful preparations for the auction, to perform the most comprehensive analysis and evaluation of the property put up for auction.
2. Sberbank AST
Most experts label this site as a pretty good quality platform , with a nice and intuitive intuitive interface .
The official website of Sberbank AST services is sberbank
Sberbank AST sells the assets of the companies that issued the loan and cannot repay it for any reason.+
An important disadvantage of the site is the small number of items to bid on.
Its most important advantage is the large number of sold parties.
4. Implementation Center
This is one of the largest locations where the assets of companies that were acquired in bankruptcy in accordance with the law are sold through auctions.
5. ELECTRO TRADING
The site presented is relatively recent. it is developing very actively and has already managed to gain popularity. The reason is that the site is very good and easy to use , and the interface is simple and understandable .
Thus, the Internet has a large number of resources on which it is possible to search for suitable items in case of a decision to participate in the auction.
1. Commercial flooring
Such sites are directly specialized in organizing and
conducting online auctions.
2. Official portals
Complete bidding data is published here.The most famous examples of such sites, as well as the newspaper (Saturday issue).
3. Aggregators offer for bankruptcy
The main goal of these portals is to collect relevant information on current bids from a large number of Internet resources.+
Those who want to offer must not only decide what they want to buy. It is important to decide where this can be done.
A step-by-step guide for bidders in electronic bidding