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Insurance agency contract as asset
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Thanks, Ill let the client know.
The problem is that if the agreement is terminated (in which I assume
rejection is included), the client gets paid something like $60,000 (based
on clients calculations) so that would be a significant disincentive to
filing the Chapter 7 case, not to mention the possible loss of his
livelihood, since theres no guarantee they will enter into a new contract,
especially if the agency had to fork over a termination fee like that.
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sounds like an executory contract which cannot be assumed by the trustee
(requires personal services), and will have to be rejected. This will
create a dischargable damage claim which can be asserted by insurance
company. Client is then free to enter into new contract post-petition.
Happy to look at it if you want to send the client over.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
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I have a potential new client who has an agency contract with an insurance
company that has many provisions, including a provision for payment of the
contract value upon termination of the agreement. However, it's not clear
about the rights that a Trustee might have, since there may be approval
necessary by the agency, spendthrift-type provision, etc. Some of this may
depend on industry-standards rather than the four corners of the contract.
In short, I (the client) needs someone with expertise in this area to take a
look at the contract and render an opinion as to the ability of a Trustee to
get at the value of the contract (and to be able to "force" a termination of
the agreement).
Anyone have that experience or know someone who does?
*************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax)
Toll Free: 1-866-576-6275
web: http://www.bklaw.com/
This Firm is a Qualified Federal Debt Relief Agency (see what this means at
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