Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hi - my name is XXXXX XXXXX I'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?