Selling an insolvent estate: what buyers and executors need to know
16 June 2026 · 4 min read
When an individual or company is sequestrated or liquidated, a trustee or liquidator is appointed to take control of the insolvent estate's assets — including property — on behalf of the creditors. Selling that property is governed by the Insolvency Act, and the proceeds are used to settle debts in a set order of preference.
Why these sales are handled by attorneys
Trustees and liquidators typically appoint an attorney to market and manage the sale, since the process involves creditor obligations, statutory notice requirements and, in some cases, approval at a creditors' meeting before a sale can be confirmed.
This gives buyers a professional point of contact who can explain exactly what stage the sale is at and what still needs to happen before transfer.
What buyers should expect
Insolvency sales are sometimes, but not always, sold on a voetstoots (as-is) basis, and timelines can depend on creditor processes outside the attorney's control. It's worth asking the listing attorney directly about the status of the sale before making an offer.
This article is general information, not legal or tax advice. Every sale is different — speak to the listing attorney or a qualified professional about your specific circumstances.
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