What Are The Most Common Assets Sold At Bankruptcy Auctions In Phoenix, Arizona?

When a debtor files for bankruptcy, they must use exemptions to keep their assets safe from the trustee and their creditors. Exemptions protect reasonable amounts of equity in possessions that the debtor must have to continue being a contributing member of society. Arizona bankruptcy debtors can protect their homes, vehicles, retirement savings, and more with all of the exemptions that our state has available. Unlike many states, including those that allow debtors to use the federal exemptions, Arizona does not have a wildcard exemption that acts as a catchall for an unprotected asset of the debtor’s choosing. A good bankruptcy attorney will ensure that nothing the debtor holds dear ends up for sale at a bankruptcy auction. If you’re wondering how to get out of debt and want more information as it pertains to your potential case from an experienced professional, our office is ready to help. Schedule your free consultation with Mesa Bankruptcy Lawyers today at (480) 448-9800.

In Arizona, bankruptcy auctions are held on the last Friday of each month at the Federal Bankruptcy Courthouse. The address for the Federal Bankruptcy Courthouse in Arizona is 230 N 1st Ave #101, Phoenix AZ 85003. The auctions begin at 8:30 AM and are open to the public. The auctions are called in the order they are listed on the calendar. In-person auctions are more common for assets like property and vehicles, which may need to be towed by the purchaser.

If you are shopping Arizona’s bankruptcy auctions, you will find a wide variety of assets for sale. Because Arizona doesn’t have a wildcard exemption, all assets not specifically described in the Arizona Revised Statutes are in danger of the trustee taking them to sell at auction. Some of the assets that trustees commonly sell by auction in Arizona include:

• Oil and Gas Mineral Rights: An individual can own the right to oil and minerals from a property without owning the land itself, or surface rights. Some states sever mineral and surface rights, and not all states require property owners to disclose mineral rights in a sale. Mineral rights are most valuable when the price of oil is high. Many bankruptcy debtors forget they even own mineral rights until they are preparing their bankruptcy petitions. Additionally, because so many people acquire their mineral rights through inheritance, it is common for Arizona bankruptcy debtors to own mineral rights in different states.
• Timeshares: Timeshares are better known for their manipulative sales pitches than their monetary value to frequent travelers. Even if they do offer savings, a bankruptcy debtor shouldn’t be prioritizing their funds toward vacation anyway. Timeshares usually have annual fees in addition to the costs associated with traveling, and some bankruptcy debtors are actually eager to shed this asset and responsibility.
• Vacant land: It isn’t uncommon for bankruptcy debtors to own land in addition to their primary residence due to plans to build a new home. Any delays and unexpected issues in these plans can be extremely costly, and possibly even be the root of the bankruptcy filing. If land is vacant and only accruing property tax, bankruptcy debtors often don’t want to use their homestead exemption and would rather let vacant land go to the trustee.
• Judgment debts: This may seem counterintuitive, but you can often find debt for sale at bankruptcy auctions. A bankruptcy debtor could have a judgment against a different debtor and not yet collected upon the judgment. Once purchased at auction, it becomes the buyer’s responsibility to garnish the judgment debtor’s wages, place a lien on their property, etc., to collect.
• Vehicles: Arizona’s bankruptcy exemptions only protect one modest vehicle per bankruptcy debtor. This leaves many households that file for bankruptcy with at least one vehicle that is unprotected. Sometimes this isn’t the world, like if the vehicle needs expensive repairs to be road-ready, or the family’s lifestyle has changed so that type of vehicle is no longer appropriate or useful.
• Electronics: Arizona’s bankruptcy exemptions only protect a limited amount of household electronics, and nowadays, most people own several different devices. This can leave old phones, tablets, laptops, and more at the mercy of the bankruptcy trustee.

If you have some spare cash and are on the hunt for a great deal, you might want to try shopping at a bankruptcy auction. Shopping at a bankruptcy auction isn’t like walking into a regular store, choosing an item, and bringing it to the cashier to purchase. Below are some tips for shopping at a bankruptcy auction if you are considering trying it for the first time.

Make sure you have the purchase funds available before the auction begins. You may be required to have cash for the full sum or a similar form of payment if you win the bankruptcy auction. You will likely not be able to use credit cards for the purchase.

Research the items in advance, if possible. Many bankruptcy auctions will have the items available for sale online before the sale begins. This gives you an opportunity to research each item and determine its market value, as well as what it’s worth to you. You can also set a budget for how much you are willing to spend on an item and avoid hastily making a bid that you later regret.

Inspect items you wish to buy whenever you are given the opportunity. You may have the chance to inspect items for sale by auction before placing your bid. You can bring a flashlight and other objects to make sure you are able to conduct a thorough inspection.

Be aware of any extra fees that may apply. There are sometimes extra fees associated with bankruptcy sales, like handling fees, a buyer’s premium, and more. This can significantly increase how much money you need to have with you to successfully purchase your item.

If you are facing bankruptcy or need legal guidance, Phoenix Bankruptcy Lawyers can assist you in understanding your options and navigating the process effectively.

Bankruptcy auctions provide the public with a peek behind the curtain of the process of clearing debts and fending off creditors with a chapter 7 or chapter 13 bankruptcy filing. Most debtors can avoid bankruptcy auctions altogether by applying the correct exemptions to all of the assets they own. But navigating exemptions, along with the rest of the rules and procedures surrounding an Arizona bankruptcy filing, can be complex and stressful without a legal background. Your assets being taken and sold at bankruptcy auction isn’t the only way a case can backfire. Delays and dismissals present obstacles to your original intent for declaring bankruptcy. Reduce these worries by retaining skilled Mesa Bankruptcy Lawyers to manage your chapter 7 or chapter 13 bankruptcy case. Our firm’s dedicated staff and attorneys put our expertise to work to discharge debts for residents of Phoenix and Tucson without the hassle. Eligible clients can file and pay for their bankruptcy in affordable installments with our Zero Down payment plan option. See if you qualify and learn more today with your free consultation at (480) 448-9800.