A Bankruptcy Lawyer’s Blog

Bidding at a Bankruptcy Auction? Here’s Some Important Information

A UK bankruptcy auction can be an exciting event that nets bidders tremendous values when a debtor is forced to liquidate his property. Unfortunately, criminals, criminal enterprises and even terrorist organizations often use bankruptcy auctions as vehicles to launder money.

In an effort to stem this illegal activity, the government formally established a set of money laundering regulations that went into effect in 2004. Here’s some vital information those who attend UK bankruptcy auctions should know.

Proof of Identity and Address is Required

The regulations require that the winning bidder at a bankruptcy liquidation auction must show proof of identity and proof of residency at the time the sale is formalized. The buyer must provide separate documents for each of the two required proofs (identity and residence). The types of documents accepted at a bankruptcy public auction are listed below.

Valid Proof of Identity Documents

For proof of identity at a federal auction and others, acceptable forms are a current UK/EU passport, current UK/EU photo driver’s license (new style), current UK/EU driver’s license (old style), Home Office resident permit for EU nationals, Inland Revenue Tax notification statement or firearms certificate.

Valid Proof of Address Documents

For proof of address, acceptable forms at a government auction and others are an Inland Revenue Tax notification statement, old style or new style UK/EU driver’s license, a utility bill less than 3 months old, a local authority tax bill, a bank, building society or credit union document or a recent original mortgage statement from a UK lender.

Caveats

At a British auction, provisional driver’s licenses are not acceptable proof of either identity or residence. Also, a driver’s license cannot be used for both proofs. In cases where the successful bidder is an agent, the actual purchaser must submit these proofs to their solicitor for later validation by the auction house or auctioneer.

Once bidders meet all the security and identity requirements, the bankruptcy auction sale can proceed. For qualified UK buyers, a bankruptcy auction is now a secure place to find undervalued property, the sale of which will not support either criminals or terrorists.

John Fabrigo is an certifiedauctioneer and a consultant with governmentauctionsuk.com – Stunning Deals on Absolutely, Anything by Searching ALL UK Auctions, Online Auctions, and Shops With Just One Click! John has developed an extraordinary marketing team who understand the global landscape of internet marketing. He is an active personal financial consultant with governmentauctionsk.com. John writes and lectures on various topics such as car Auction, government car auction, online car auction, police car auction, public car auction, used car auction, property auction, government property auction, property auction london, property auctions uk, property sale auction, seized property auction, bankruptcy auction, bankruptcy auction sale, bankruptcy auctions uk, business bankruptcy auction etc.

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