How to Buy a Bankrupt Business

One way to expand your assets and revenue is to seek out bankrupt businesses and buy up whatever they are selling. Even though a business is bankrupt it doesn't mean it is not a good investment. Most bankruptcies occur because of poor management. People are not assets that you need to acquire if you have a staff that can handle the extra responsibility in your own organization.

Instructions

1. Find a bankruptcy lawyer that you trust and hire them.

2. Move as fast as possible with your lawyer to meet with creditors to find out their flexibility in debt reduction.

3. Negotiate with creditors through your lawyer for discounts and payment settlements.

4. Meet with the judge and demonstrate that your offer is a fair distribution of payment.

5. Give your lawyer permission to submit a written bid for the bankrupt business.

6. Write the check for the deposit and have the lawyer submit it to the court. Now you wait for the judge's decision on whether or not you met the rules of fair distribution.

7. Mobilize all assets and close the deal quickly.

Tips & Warnings

• Get a lawyer who deals solely with purchasing bankrupt businesses.

Resources

• Articles about investing in a bankrupt business.
• A website about bankruptcy by state.