The Art of Bankruptcy: Consigned Artworks and Bankrupt Galleries

In an article published by the Center for Art Law, Laurel Salisbury examines how bankruptcy law and the Uniform Commercial Code affect the rights of artists and collectors who consign artwork to galleries. The piece outlines why artists receive special statutory protections in many states, while collectors must rely on UCC filings to preserve their ownership interests. It also highlights recent gallery bankruptcies that illustrate the risks of informal practices in the art market. Clients working with galleries can use this guidance to better safeguard their property in the event of financial distress.

Read the full article on Center for Art Law.