Hi - my name is XXXXX XXXXX X'm a Bankruptcy litigation attorney. Thanks for your question.
Because your business is an asset, you would have to get permission from the bankruptcy court to add a partner/sell an interest in your business because that's an asset of your bankruptcy estate. The trustee could likely have a claim to the proceeds from selling an interest in the business. At the very least, the trustee would have an interest because the addition of a partner will affect the business ownership and the trustee's collateral.
Thus, you'll need to file a motion for permission to add a partner and find out what the trustee wants to do in terms of accounting for the interest, the money received, etc.
There shouldn't be much opposition from the trustee or your creditors IF you're receiving reasonable value for the interest AND if this is going to make your plan more viable than it already is. However, you still have to get permission.
thank you for your response... so would that mean i'd have to possibly give the trustee a portion of the interest paid from my new partner?
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).