Bankruptcy Asset Purchase Timeframe and Process

[vdo167]

California,

What are the rough timeframe and process with purchasing asset under bankruptcy?
The former tenant is planning on filing for bankruptcy and she has a liquor license that the landlord is interested in purchasing for the building. The landlord wants to know how long will it take for the liquor license to go into auction and what the process is after it is approach to obtain the license.

Thanks

 

[despritfreya]

The former tenant is planning on filing for bankruptcy

What chapter?

she has a liquor license that the landlord is interested in purchasing for the building.

License will not be for sale if she files a Chapter 11 or Chapter 13 and it will only be for sale in a Chapter 7 if the license 1) actually belongs to the debtor; and 2) is not otherwise fully encumbered.

The landlord wants to know how long will it take for the liquor license to go into auction

If a Chapter 7 and the Trustee determines there is value to be had for the general unsecured creditors, 4 to 6 months after the case is filed but that is just an average.

what the process is after it is approach to obtain the license.

Your friend will have to check with the Trustee as local procedure dictates how such auctions occur.

Des.