How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask cfortunato Your Own Question
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
14232603
Type Your Bankruptcy Law Question Here...
cfortunato is online now
A new question is answered every 9 seconds

HOW TO BUY ASSETS OF AN LLC CONTEMPLATING BANKRUPTCY

Resolved Question:

HOW TO BUY ASSETS OF AN LLC CONTEMPLATING BANKRUPTCY
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi JACustomer,

Are you asking about how to protect those purchased assets once a Bankruptcy is filed?

If not, what is your Bankruptcy Law question?

Customer: replied 6 years ago.

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

Expert:  cfortunato replied 6 years ago.

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).

cfortunato and other Bankruptcy Law Specialists are ready to help you