Trustee sales vs private closeouts

“Liquidation” covers two very different kinds of sale. Knowing which one you are looking at tells you who you are dealing with and what you can expect.

Private closeouts

A business that is closing, downsizing or clearing overstock sells its own goods. The owner decides prices and terms. The Liquidation Market is built for this kind of sale: a business selling what it owns.

Trustee and court-supervised sales

In a Chapter 7 case a trustee collects and sells the debtor’s non-exempt property for creditors. In Chapter 11 the debtor in possession can sell property, and sales outside the ordinary course of business need notice and, often, court approval. A receiver appointed by a court may also sell assets under that court’s orders. The U.S. Courts explain Chapter 7 and Chapter 11.

How the Market tells them apart

• Bankruptcy, court, trustee and receivership wording is blocked unless the seller is a trustee or receiver and Liquidator.news has reviewed the case number, the court and the sale order.
• Those lots say exactly: “Seller states: Case no. X, court. Order document reviewed by Liquidator.news on date; not confirmed with the court.” Check the docket yourself for anything that matters.
• No lot may claim to come from a company on the filings wire, and the wire’s filing and company pages never show lots.