Lenny liquidated in 11?

worldseriesringdykstra — An extra $56K, thanks to Bill Buckner.

You may have seen recent reports that Lenny Dykstra’s World Series ring was sold at auction to a Queens man for $56,000.

And if you’ve been following the travails of Lenny Dykstra, or you’ve been reading previous posts on this blog (e.g., “Why Did Lenny Dykstra File for Chapter 11?” or “Dykstra Learns More About Chapter 11 as Trustee Appointed in the Case“), then you know that Mr. Dykstra is currently going through a Chapter 11 bankruptcy.

So where did this auction come from? Was it part of the Chapter 11 bankruptcy process?

In this case, the answer is no. Dykstra actually sold the World Series Ring along with other baseball-related possessions to a pawn broker earlier this year prior to his bankruptcy filing. According to the article on Gothamist, he was even apparently hoping to bid on the items himself.

That said, Chapter 11 bankruptcy does have an auction process for sale of assets, which can involve complex bidding procedures, especially in the case of a large corporate debtor entity. And a trustee, like the one appointed in the Dykstra case, can use an auction to try and maximize the value of assets. But that’s not the situation in Dykstra’s case.

And meanwhile, since we’re on the topic of liquidating assets, it’s worth noting that while Chapter 7 cases are often referred to as “liquidations” (a term that frightens many people contemplating bankruptcy), many debtors do not in fact have their assets liquidated. That’s because enough of their assets are protected by the statutory exemptions that there are no assets that can be liquidated.

If you have questions about filing for bankruptcy in New York, about Chapter 7, Chapter 11 and Chapter 13 bankruptcy, as well as about exemptions and anything else related to bankruptcy in New York, please feel free to contact me for a free initial consultation and I’ll be happy to answer all of your questions and help figure out the best strategy for you.

Go to Chapter 11 Bankruptcy Attorney Brooklyn NY to learn more about Rosenberg Musso & Weiner LLP and/or to set up a free consultation.

Bankruptcy, Brooklyn Bankruptcy, Celebrity Bankruptcy, Chapter 11, Chapter 13, Chapter 7, Lenny Dykstra, New York Bankruptcy, New York Bankruptcy Lawyer

Rosenberg, Musso & Weiner, L.L.P
26 Court St # 2211
Brooklyn, NY 11242, USA
718-855-6840
http://nybankruptcy.net/

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