You can sometimes find huge savings through store closing sales or through corporate bankruptcy liquidations, yet finding a listing of bankrupt companies is more complex than one may think. Still, it may be worth the effort to find businesses in distress. In a down economy, saving money can be crucial to staying on top of finances, and it can pay off to find bargains in any place they are available.
Subscribe to free subscription services such as bankruptcy.com and Google alerts, which will let you know about new bankruptcies being filed. Google alerts can be helpful when it comes to local businesses. Go to the link in the Resource section at the bottom of this article and type "the name of the city" and "bankruptcy." Or simply track "bankruptcy." You can set it up so that Google Alerts will give you updates daily, as-it-happens or weekly. If you are looking for sales, type in "bankruptcy" "sale."
If you are looking for closed stores, type in "bankruptcy" "closing stores."
Understand the process. Once a company files for Chapter 7 bankruptcy, its assets are in the hands of the court. This means if you are interested in buying the company's liquidated assets or stock, you will need to work with lawyers and the courts who handle the specific company's case.
If a company is closing a certain amount of stores, it will have store closing sales, but any leftover merchandise will probably be shipped to other stores or sold by a liquidator.
Check court records. If you are interested in the company's liquidation, you will want to track the progress of its bankruptcy filings in the Public Access to Court Electronic Records, or PACER. The system will have information on who is handling the liquidation process. Consider calling PACER to make sure it has the information you need before you register online, as downloading information on the system carries a small cost per page.
- John Foxx/Stockbyte/Getty Images