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  1. #1
    Join Date
    Sep 2016
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    Default Can You Purchase a Business While it is in Bankruptcy

    If a business is in bankruptcy, can you purchase the business?

  2. #2
    Join Date
    Sep 2005
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    Default Re: Can You Purchase a Business While it is in Bankruptcy

    It is possible to purchase a business while it is in bankruptcy proceedings.

    If the business filed a Chapter 7 bankruptcy (liquidation), the buyer can try to negotiate a purchase price for the assets of the business with the trustee, or purchase them at auction if the assets are auctioned.

    If the business has filed a Chapter 11 bankruptcy (reorganization), the purchase may be made part of the plan for reorganization, or it can be done as a Section 363 sale (11 USC Sec. 363). Although a Section 363 sale must be approved by the bankruptcy court after notice to all interested parties, it is normally faster and cheaper to accomplish than a purchase through the reorganization plan.

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