Stalking Horse Agreements
For some people who file for bankruptcy, losing some assets is inevitable. In these scenarios, debtors are often put into an auction system in which assets are sold to cover other bankruptcy costs. Various tactics may be employed to make the most out of an auction, as debtors will try to raise sufficient funds to resolve their bankruptcies. A “stalking horse agreement” or offer is one way in which a debtor can attempt to achieve a more favorable auction outcome.
If you are considering bankruptcy or looking over your bankruptcy options, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. at 561-353-2800.
How to Improve Auction Pricing
There are few different options to pursue when trying to improve your assets at auction. A stalking horse offer works in the following ways:
- A series of preferential bonuses are attached to a pre-auction bid.
- These bonuses increase the worth of the asset to increase the opening bids.
- Stalking horse offers must be filed with a court to verify their legality.
While this can seem like an easy way to establish a higher bid on an asset, this maneuver requires a pre-auction bidder to secure higher asset worth. However, if the offer is accepted by the court, the auction may prove to be significantly more valuable for a debtor and may drastically protect assets from low offers.
Contact Us
A professional advocate can advise and guide you through bankruptcy should you find yourself in a position to file. Contact the West Palm Beach bankruptcy lawyers of Eric N. Klein & Associates, P.A. at 561-353-2800 to learn more about the process and details of bankruptcy law as they apply to you with an experienced legal staff today.
