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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 114797
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Entered into a silent partner agreement in 2014. Received some

Customer Question

Entered into a silent partner agreement in 2014. Received some payments (2) and came back one day and found the doors locked. June 2015 received a notice for a filing of a chapter 7 and I must be listed as a "creditor". We have a signed contract giving me 10% of the business but I'm sure there are no business assets. Can't we work out some kind of payment plan?
Submitted: 1 year ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Unfortunately, if he placed the business in bankruptcy, you would have to be a creditor for any claims against the business. You can seek to negotiate with the trustee in bankruptcy, but the principal owner cannot pay you anything once bankruptcy is filed because anything he would give you would be proceeds of the bankruptcy estate and the trustee could recover the money.
So I am afraid that if you invested and were entitled to a 10% share, you have to try to file a creditor claim and you would be at the bottom of the list after the secured creditors to try to recover I am sorry to say.

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