Work

The Optimal Way to Sell a Debtor’s Property During Bankruptcy

Year: 2026
Type: article
Abstract: This article is devoted to the issue of choosing the most effective way to sell the property of a bankrupt entity. It discusses the sale of each asset individually or selling of the entire property complex as an operating business. At the same time, there is no unified practice on this issue in the judicial practice in bankruptcy cases. The purpose of the study is to determine the optimal way to sell a debtor’s property during bankruptcy by establishing the main criteria for analysis during the selection of either an object-based sale of assets or a sale of a property complex as a whole as a single production and technological unit of business. In the course of the research, methods such as content analysis of sources, regulatory regulation, and market analysis were used. These studies were carried out by taking into account the analysis of the current legislation norms, general economic market trends and the study of judicial practice in bankruptcy cases of business entities. This study is based on a forensic examination conducted by the author as a judicial expert in a bankruptcy case of a legal entity. In the course of the study, the author analyzed the main reasons for the location of non-current assets in business entities, examined the basic conditions and market trends in the sale of property of bankrupt entities, and identified the main criteria and factors that influence the decision on choosing the optimal method for selling the debtor’s property during bankruptcy. The study shows that there is no consensus on this issue among the scientific community and judicial practice. The author has developed and proposed recommendations that are most likely to lead to cost-effective decisions when choosing a mechanism for selling the property of a bankrupt entity. The sale of industrial and real estate on site would be more appropriate if the production process was destroyed, and part of the equipment was dismantled. Conversely, the sale of the debtor’s property as a single lot (excluding non-core assets) would be most effective if the debtor’s assets could be sold as a going concern.
Language: English
Subfield: Law
Open Access status: diamond
OpenAlex ID: W7203674565
FWCI:
Cites: 12
Cited by:
Related to: 10