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How Are Assets Sold By A Panel Trustee?

Panel Trustees handle various assets that are eventually sold.  Panel Trustees are allowed to sell assets of the estate after notice is given to all creditors of the debtor.  Panel Trustees are not generally required to provide notice of bankruptcy sales to the general public.  For sales of business property, the Panel Trustee will usually appoint an auctioneer to handle the administration and sale of property.  Typically the auctioneer provides notice to the general public of these sales.  Panel Trustees generally sell real property at a bankruptcy court sanctioned sale. 

A Panel Trustee may hire a real estate broker to market the property and to bring forward an original bid.  When a potential bid is accepted by the Trustee, he will notice the sale through the Bankruptcy Court for a specific hearing date before a Bankruptcy Court Judge.  At this sale, the Judge will ask for other competitive bidders and will sell the property to the highest and best bidders.  Some Panel Trustees sell property at sales held in their offices once notice is given to the creditors or the estate. 

Successful bidders at a bankruptcy sale are required to complete the sale and pay the proceeds to the Panel Trustee.  Bidders who do not close their sales may be liable for the full amount of the sale if the Trustee cannot find another buyer.  Bidders must not collude together in order to rig a sale.  This could be a violation of federal bankruptcy and criminal laws.

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