Results 1 to 3 of 3

Hybrid View

  1. #1
    Join Date
    Aug 2011
    Posts
    1

    Default Purchasing a Private Business Thats About to File Bankruptcy

    My question involves business law in the state of: Georgia.
    I have a few small LLC's. A larger competitor in going under and has
    a lot of debt. I would like to buy the company and currect assets without
    accepting their debt. Is this possible or should I buy all the liquid assets and let them
    go their way?

  2. #2
    Join Date
    Mar 2009
    Location
    Key West, FL
    Posts
    2,350

    Default Re: Purchasing a Private Business Thats About to File Bankruptcy

    If you purchase an ongoing business you also get the debts. You can't really purchase the name, assets intact, customer goodwill and so forth without being obligated for the debts. Your best bet is to let it go under and then purchase the assets you are interested in out of bankruptcy. That would be my suggestion. However, if you are contemplating any such purchase you need a business attorney, and one that handles acquisitions, to advise you. You could never anticipate all the possible pitfalls and you must have an attorney.

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Purchasing a Private Business Thats About to File Bankruptcy

    You have to be exceptionally careful. If you buy the assets of a failing business you may find that various creditors, vendors, or tax agencies have liens against some or all of the assets you purchased - and that they use assert those liens take assets from you or sue you for their value. Also, Georgia's version of the Bulk Sales Act would appear to prevent your attempt to sever the business assets from its liabilities, potentially leaving creditors high and dry. If you decide to proceed with this transaction, it would make a lot of sense to work with a good business lawyer.

    1. Sponsored Links
       

Similar Threads

  1. Chapter 13: Can I File a Chapter 11 Bankruptcy if I Closed Business 3 Years Ago
    By DLynn in forum Bankruptcy Law
    Replies: 2
    Last Post: 06-14-2011, 03:15 PM
  2. Foreclosure: Purchasing a Foreclosure Property and Bankruptcy
    By liza180 in forum Buying, Selling and Conveying Real Estate
    Replies: 2
    Last Post: 05-19-2011, 08:39 PM
  3. Business Issues: Purchasing Real Estate with Business
    By Jdawg in forum Business Law
    Replies: 1
    Last Post: 01-23-2010, 05:46 PM
  4. Chapter 7: Purchasing Property Before Filing for Bankruptcy
    By Da_Rooster in forum Bankruptcy Law
    Replies: 1
    Last Post: 05-04-2009, 08:26 PM
  5. Chapter 7: Purchasing a Car Before Bankruptcy
    By thepatters in forum Bankruptcy Law
    Replies: 3
    Last Post: 09-10-2007, 04:42 PM
 
 
Sponsored Links

Legal Help, Information and Resources