Chapter 7 Bankruptcy assets are administered by a duly appointed trustee who's responsible for the orderly liquidation of non-exempt property (personal and/or real) of the estate.
Even though highly unlikely to occur, all bankruptcy sale offers are subject to higher bids for approximately 3 weeks after the initial sale motion is filed with the court. If the initial buyer’s offer is out bid, that buyer may likewise raise the bid in an effort to win the asset. The following is an example of how such a circumstance might take place:
IMPORTANT NOTICE: All sales of bankruptcy assets require bankruptcy court approval (a judge’s signed order). In most states, that process takes about 30-45 days. If the court does not approve the sale, the entire transaction becomes null and void and any earnest money deposits that apply will be promptly returned to the prospective buyer.