Bankruptcy Auctions
How Bankruptcy Auctions Work
When a company or private individual declares bankruptcy, the courts must decide how their creditors will be repaid and in which order. Whatever is left of the assets is then handed to a trustee who is responsible for conducting the bankruptcy auctions.
Since bankruptcy auctions are a last attempt to salvage whatever money is left to pay off creditors, the terms are typically no reserve. Whenever you have a no reserve auction, it means the item will sell for the high bid, even if that high bid is dollar. Small companies in search of computers, office equipment, restaurant equipment, tools, and office supplies can go to bankruptcy auctions to find deals on the things they typically need.
