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Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17252
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Thinking about buying a restaurant that has a lot of debt.

Resolved Question:

Thinking about buying a restaurant that has a lot of debt. If I buy the corp and take it bankrupt, does that affect the liquor license?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 7 years ago.
the license could be sold as an asset, it would be best to not buy the corp, but have the liquor license transfered to your new corp, to avoid a bankruptcy filing.
Customer: replied 7 years ago.
If we have it transfered to a new corp, what happens to all the creditors? Does the lease also have to be transfered?
Expert:  WALLSTREETESQ replied 7 years ago.
the new creditors are out of luck, and can only go after the old Corporation, you will have assumed none of the bad debts of the corp.

Edited by WALLSTREETESQ on 7/6/2010 at 6:42 PM EST
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