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Maverick
Maverick, Attorney
Category: Legal
Satisfied Customers: 6390
Experience:  20 years experience as a civil trial and appellate lawyer
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I currently work company who filed 11. We have received our

Customer Question

I currently work for a company who filed for Chapter 11. We have received our judgement and are making payments to the trustee. Is there an option for myself or another party to purchase the book of business without inheriting the liabilities.
Submitted: 11 months ago.
Category: Legal
Expert:  Maverick replied 11 months ago.

Welcome to Just Answer (“JA”)! My name is Maverick.

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Expert:  Maverick replied 11 months ago.

Yes, a Chapter 11 debtor may pursue a sale of substantially all of its assets in bankruptcy, with the buyer to operate the business prospectively. A sale of substantially all of a debtor’s assets may occur either inside or outside of a plan of reorganization. A sale of substantially all of a debtor’s assets means a sale of assets such as real estate, inventory, equipment, trademarks and other assets typically sold in an out-of-court asset sale. These sales are governed by § 363 of the Bankruptcy Code and, therefore, are commonly referred to as “363 sales.” The bankruptcy court will approve a sale of substantially all or a portion of a debtor’s assets if all provisions of section 363 are followed, the bid is fair, and the sale is in the best interests of the BK estate and its creditors.