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Sale of business
To the best of my knowledge it is important the corporation pay its debts to creditors before it disburses money to insiders. On that basis I would say that it is perfectly fine for the corporation to pay its debts before the individual shareholder files a BK. I would suggest you wind down the corporation with the secretary of state or file a bk for the corporation also.
Catherine Christiansen
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To: cdcbaa
Sent: Saturday, January 28, 2012 3:18 PM
Subject: [cdcbaa] Sale of business
Debtor sells business that is a corporation. He needs to personally file ch 7. Is there any problem if he uses the corporation income from the sale to pay corporate taxes and business debt and then file for chapter 7?
I don't think there should be a problem but just looking at other opinions.
Thank you,
Nate Berneman
Sent from my iPhone: Nathan Berneman
The post was migrated from Yahoo.
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"Corporation income from the sale" sounds like sales proceeds, and those
would be the debtor's property. His payment of the corporate debts after he
sells the corporation sounds like the payment of corporate debts guaranteed
by the debtor, and therefore a preference to those creditors.
Sale of the corporation means that the corporation as a whole gets a new
owner, and the corporation goes to that new owner with all its debts and
liabilities. If the sales agreement contemplates his payment of these
debts, then that payment goes to the actual sales price of the corporation.
John D. Faucher
Hurlbett & Faucher, LLP
On 1/28/12 3:18 PM, "Nathan Berneman" wrote:
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> Debtor sells business that is a corporation. He needs to personally file ch
> 7. Is there any problem if he uses the corporation income from the sale to pay
> corporate taxes and business debt and then file for chapter 7?
>
> I don't think there should be a problem but just looking at other opinions.
>
> Thank you,
>
> Nate Berneman
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> Sent from my iPhone: Nathan Berneman
>
>
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"Corporation income from the sale" sounds like sales proceeds, and those would be the debtor's property. His payment of the corporate debts after he sells the corporation sounds like the payment of corporate debts guaranteed by the debtor, and therefore a preference to those creditors. Sale of the corporation means that the corporation as a whole gets a new owner, and the corporation goes to that new owner with all its debts and liabilities. If the sales agreement contemplates his payment of these debts, then that payment goes to the actual sales price of the corporation. John D. FaucherHurlbett & Faucher, LLPOn 1/28/12 3:18 PM, "Nathan Berneman" <nathanberneman@yahoo.com> wrote:
Debtor sells business that is a corporation. He needs to personally file ch 7. Is there any problem if he uses the corporation income from the sale to pay corporate taxes and business debt and then file for chapter 7?
I don't think there should be a problem but just looking at other opinions.
Thank you,
Nate Berneman
Sent from my iPhone: Nathan Berneman
The post was migrated from Yahoo.
Debtor sells business that is a corporation. He needs to personally file ch 7. Is there any problem if he uses the corporation income from the sale to pay corporate taxes and business debt and then file for chapter 7?
I don't think there should be a problem but just looking at other opinions.
Thank you,
Nate Berneman
Sent from my iPhone: Nathan Berneman
The post was migrated from Yahoo.