My jurisdiction is: Alaska, USA
I have been unable to collect on a Money Note that was received as payment for a business. The Note is now over one year in default. The value of the business is now at risk and I must rescind the sale and recover the property to avoid further loss. The current owner (debtor) established an LLC for the business.
A security agreement is in place that provides for return of the business in its entirety if the default cannot be cured. In that signed agreement, in so many words, the buyer stipulated cooperation if that became necessary; and that, I believe, should preclude his right to file for bankruptcy protection.
However, since the buyer has indeed raised the specter of filing bankruptcy, I would like some expert opinion to back up my lay perspective. As noted, the property is well secured with a security agreement.
My specific question is... if he does file for bankruptcy (probably Ch.11), can it prevent me from rescinding the sale and recovering the business?
Also, would the buyer even be qualified for bankruptcy? I should also mention that the LLC has a silent partner; the GM has 64% and the junior, obviously, 36%.
PS: I do have an attorney, but bankruptcy is not his forte.
Thanks in advance for the help
one-on-one
I have been unable to collect on a Money Note that was received as payment for a business. The Note is now over one year in default. The value of the business is now at risk and I must rescind the sale and recover the property to avoid further loss. The current owner (debtor) established an LLC for the business.
A security agreement is in place that provides for return of the business in its entirety if the default cannot be cured. In that signed agreement, in so many words, the buyer stipulated cooperation if that became necessary; and that, I believe, should preclude his right to file for bankruptcy protection.
However, since the buyer has indeed raised the specter of filing bankruptcy, I would like some expert opinion to back up my lay perspective. As noted, the property is well secured with a security agreement.
My specific question is... if he does file for bankruptcy (probably Ch.11), can it prevent me from rescinding the sale and recovering the business?
Also, would the buyer even be qualified for bankruptcy? I should also mention that the LLC has a silent partner; the GM has 64% and the junior, obviously, 36%.
PS: I do have an attorney, but bankruptcy is not his forte.
Thanks in advance for the help
one-on-one
