How to Buy Bankruptcy Items
- 1). Gather information about bankruptcy cases with scheduled sales or auctions of the type of property you are interested in purchasing. There are a number of resources to use to get this information. The primary resource is the clerk of the court. Through the court clerk's office you can obtain dockets from pending cases. These dockets include information about scheduled sales or auctions. Many bankruptcy courts now maintain portals through their websites through which you can obtain this type of information.
- 2). Contact a debtor's attorney, the debtor if not represented or the bankruptcy trustee if you identify a case through which property of interest to you is for sale rather than slated for an auction.
- 3). Examine the property--personal or real estate--up for sale before you make an offer on it. Do not blindly extend an offer to purchase. Although the debtor's attorney, debtor directly or bankruptcy attorney likely has a fairly recent appraisal of the property, consider obtaining a fresh and independent appraisal if a proposed purchase represents a more significant financial investment on your part.
- 4). Attend a bankruptcy auction if there is property (again, personal property or real estate) that is slated for sale via this process. Although a bankruptcy auction is a prime way to obtain all types of property at prices below what the traditional market calls for, do not fully commit yourself without undertaking your due diligence. Due diligence includes inspecting the property and obtaining an independent appraisal as necessary.