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Ask Asad Rahman Your Own Question
Asad Rahman
Asad Rahman, Attorney
Category: Business Law
Satisfied Customers: 2018
Experience:  Practicing Attorney with 10 years experience
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My supplier has a non-patented formula that he contracts

Customer Question

My supplier has a non-patented formula that he contracts manufacturing with a third party, then resells to me. He just bankrupted his company Ch. 7 due to $230k owed to the IRS, $20k owed to the State and $5k in attorney's fees. He set up the exact same business under a different name. Can the IRS go after funds in the second company? Can the bankruptcy trustee recall payments to the manufacturer made in the past year or other time period? Can the BT sell the bankrupted company with the contract with the manufacturer?
Submitted: 5 months ago.
Category: Business Law
Expert:  Asad Rahman replied 5 months ago.

Most likely they can go after only other assets not another company. Yes, the trustee can orchestrate an asset sale to another party including the manufacturer.

Expert:  Asad Rahman replied 5 months ago.

Let me know if you have any additional questions. Otherwise a positive rating of 5 stars would be appreciated.

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