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Buying good will from BK trustee to avoid successor liability
Here's an unusual situation:
Debtor owned (a) commercial land equipped as an auto body shop and (b) a
corporation that operated the body shop. Debtor and his corporation
cosigned various obligations to creditors. Debtor also mortgaged the land
on which the corporation stood.
Debtor ran into financial trouble and stopped paying the mortgage. He also
filed bankruptcy and received a discharge. Debtor was and is married, but
he filed alone. The mortgage lender is about to foreclose to on the land.
Debtor's wife has wealthy relatives abroad who are willing to lend her money
to buy the land from the bank after the foreclosure. Debtor wants to have
his wife buy the land. Debtor wants to continue operating the body shop in
the same location.
1) Is there a problem here? Is there successor liability? Is there another
problem?
2) The reason why debtor wants to return to the original location is, in
part, to take advantage of the good will of the original business.
Currently the corporation owns the good will. If the corporation files ch
7, and the good will is sold by the trustee to the debtor or to the debtor's
wife, would this resolve the problem?
Alik Segal
Alik.Segal@gmail.com
310-362-6157
Cal. CD, Los Angeles
Here's an unusual situation:Debtor owned (a) commercial land equipped as an auto body shop and(b)a corporation that operated the body shop. Debtor and his corporation cosigned various obligations to creditors. Debtor also mortgaged the land on which the corporation stood.
Debtor ran into financial trouble and stopped paying the mortgage. He also filed bankruptcy and received a discharge. Debtor was and is married, but he filed alone. The mortgage lender is about to foreclose to on the land.
Debtor's wife has wealthy relatives abroad who are willing to lend her money to buy the land from the bank after the foreclosure. operating the body shop in the same location.
1) Is there a problem here? Is there successor liability? Is there another problem?2) The reason why debtor wants to return to the original location is, in part, to take advantage of the good will of the original business. Currently the corporation owns the good will. If the corporation files ch 7, and the good will is sold by the trustee to the debtor or to the debtor's wife, would this resolve the problem?
-- Alik SegalAlik.Segal@gmail.com310-362-6157Cal. CD, Los Angeles
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