Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Are you asking about how to protect those purchased assets once a Bankruptcy is filed?
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I need to know if i purchase assets(equipment) from an llc that later files for bankruptcy, is the llc itself responsible for any debts (Inc Board of equalization) or can the equipment be confiscated
If you pay a reasonable amount for those assets, they cannot be taken by the Bankruptcy court, unless it can be proved that the sale was made by the debtor with the "actual intent to hinder, delay, or defraud" any creditor. Bankruptcy Stat. 548(a)(1)(A).
However, if you pay significantly less than what they are worth, then the Bankruptcy court can "avoid the transfer", which means the assets can be confiscated. Bankruptcy Stat 548(a)(1)(B).
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