Does Bankruptcy Undo a Property Auction

Question: We advertised and listed two of his commercial properties for auction. The auction went though and I now hold the deeds to both. He has now filed for bankruptcy, is the auction valid?

Answer: Bankruptcy stops a foreclosure auction only if it was filed before the auction – even if it was a minute before. Once the auction occurs the bankruptcy can not stop the process. In RI once the hammer drops at an auction the deal is done.