Bankruptcy Sale Law and Legal Definition
A bankruptcy sale refers to a free and clear sale of debtor's real estate or personal property conducted by the bankruptcy court to obtain proceeds for distribution to creditors of the bankruptcy estate. The Court conducts bankruptcy sale through trustees.
The following is an example of a case law on bankruptcy sale:
A bankruptcy sale of real property is a judicial sale and should be conducted on adequate notice, in order to obtain as many bids as possible, and pursuant to specific terms of sale to guide the bidders. [In re Morrissey, 391 F. Supp. 1350, 1352 (D.N.Y. 1975)].
