Readers of this Mesa, Arizona Bankruptcy Law Blog may remember reading about boxing legend Evander Holyfield's financial difficulties and resulting foreclosure in an attempt to settle his debts. For those Arizona residents struggling with bills and debts that continue to pile up, declaring Chapter 7 bankruptcy is also an option to keep in mind that can wipe out almost all bills and put an end to creditor harassment and wage garnishment.
Chapter 7 bankruptcy is often referred to as liquidation bankruptcy because a trustee will sell some of the debtor's assets in order to pay creditors, and most of the remaining debts are discharged. Technology has made it easier for trustees to convert such assets into cash to repay creditors. According to some sources, online sales have radicalized the bankruptcy auction business.
A large portion of the assets that go through bankruptcy courts in Chapter 7 bankruptcies are now sold over the Internet. Of course, debtors are allowed to keep some assets that are exempt from bankruptcy. These include the house the debtor lives in, furniture, appliances and more.
Many celebrity bankruptcies have utilized online auctions to sell their assets--in addition to Johnny Cash and Michael Jackson's assets being auctioned online in the past, football star Warren Sapp recently offered 215 pairs of sneakers for sale on eBay.
However, not everyone benefits from online auctions and some have to remove their items because bids failed to reach even the lowest required selling price.
Selling items over the Internet, whether during or before bankruptcy proceedings, can be harrowing as people await cash to roll in so they can satisfy their creditors. During the bankruptcy process, however, a bankruptcy attorney and trustee facilitate this process so the filer does not have to worry about this.
Declaring bankruptcy is a viable option for many Arizona residents who would like to retain possession of some of their household assets while discharging most of their debt.
Source: SF Gate, "Bankruptcy liquidators turn to Web," Dawn McCarty and Phil Milford, Sep. 28, 2012