Bankruptcy courts supervise the liquidation of a debtor's assets to satisfy creditors and can void or reject asset-sale auctions if they find procedural defects or other problems in the process.
October 15, 2025
high
procedural
Asset sales under bankruptcy oversight must comply with court procedures, and judges can nullify auctions that do not meet required standards.
Parties subject to large civil judgments may seek bankruptcy protection and attempt to sell related assets through bankruptcy proceedings, and bankruptcy judges have authority to approve or reject proposed asset sales.
high
legal
Bankruptcy process for defendants facing civil liabilities