Reserve price

Reserve price – in public auctions within Litigation procedures, the bailiff may specify a minimum price, under which the offered asset won’t be sold to bidders. The role of such minimum price, called “reserve price” is to secure that a particular price will be collected at least, for satisfaction of creditors. As example, if a seized apartment has fair market value of 10 000 dollars, a bailiff may specify a reserve price of at least 5000 to ensure that if sold, the creditor will get at least this particular money in the worst scenario.

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