Buying good will from BK trustee to avoid successor
Posted: Wed Apr 27, 2011 6:18 pm
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While one should never say never, I think the risks of successor liability
here are very low. This is not a debtor who is manufacturing a product for
the stream of commerce where there is strict liability. This is not the
Piper Aircraft case of many years ago. The scenario you describe has risks,
but the risks of successor liability are very low. The principal risk in my
view is that the Trustee may hold out for an unreasonably high price.
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.
Mark J. Markus
Sent: Wednesday, April 27, 2011 5:01 PM
To: cdcbaa@yahoogroups.com
Subject: Re: [cdcbaa] Buying good will from BK trustee to avoid successor
liability
You stated one of the main reasons where it is worthwhile to file a Chapter
7 case for a corporation. Purchasing assets from the Trustee is a good way
of shielding the successor from liability. This doesn't guarantee that
there won't be successor liability. Things to watch out for also include
whether the new entity has the same or similar name, whether the ownership
is substantially similar, etc. I would recommend having your client's wife
consult with an attorney who deals with successor liability and map
everything out. But filing a Chapter 7 for the corp could be beneficial
(assuming there aren't hidden issues such as insider transfers, etc.--you
need to analyze everything)
*************************
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)
web: http://www.bklaw.com/
This Firm is a Qualified Federal Debt Relief Agency (see what this means at
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