Selling Bankruptcy Estate Property In A Chapter 11 Case

Business bankruptcy cases can be different from personal cases, in that assets will often need to be sold off soon after a petition is filed.  This can happen in personal cases as well, of course, but businesses cases can sometimes carry with them a special sense of urgency.  Cash often needs to be raised, or the business may need to shed itself of unwanted assets.

Real estate cases see this issue with some frequency, where closing and sale dates are negotiated in advance.  Assets can be sold before, during, and after confirmation of a Chapter 11 plan.  Sections 363 and 1123 of the Bankruptcy Code govern preconfirmation and postconfirmation sales of estate assets, respectively.

Continue reading