If you enter a contract and the other party doesn't disclose their bankruptcy, is the contract null and void? 11 Answers as of May 17, 2016

If you enter a business contract with an individual and company and they're filing for bankruptcy and don't disclose it in the contract, does that make the contract null and void?

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Ronald K. Nims LLC | Ronald K. Nims
No, bankruptcy generally will not make a contract void, unless there was fraud and misrepresentation. If the company lied to you about their financial condition, that would generally invalidate the contract.
Answer Applies to: Ohio
Replied: 5/17/2016
A Fresh Start
A Fresh Start | Dorothy G Bunce
Really would depend on the exact nature of the circumstances. As a general rule, a person is not obligated to disclose their financial business to someone simply because they do business with them.
Answer Applies to: Nevada
Replied: 5/16/2016
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
Probably not automatically. The question would likely be whether or not disclosure of the bankruptcy was required under the circumstances. Sometimes it may make no difference; sometimes a statute ( e.g. in securities law) may require disclosure, and lots of other facts or circumstances. Could make a difference.
Answer Applies to: Wisconsin
Replied: 5/16/2016
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Not enough facts here. Did you give them money and then they filed? If so you have 60 days from their 341(a) hearing to object to your debt being discharged. Nothing is automatic, you have to go to court to preserve your rights. You should see local counsel.
Answer Applies to: California
Replied: 5/16/2016
Goldsmith & Guymon
Goldsmith & Guymon | Marjorie Guymon
It may be, depending upon the type of filing and the type of contract. I encourage you to seek competent legal counsel.
Answer Applies to: Nevada
Replied: 5/16/2016
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    Not necessarily. It depends on a number of factors. You will be well advised to meet with an experienced BK lawyer. Of course, they will charge you their standard hourly fee for a one hour consultation.
    Answer Applies to: Colorado
    Replied: 5/16/2016
    Stephens Gourley & Bywater | David A. Stephens
    It could depending on the nature of the contract and whether performance has started.
    Answer Applies to: Nevada
    Replied: 5/16/2016
    R. Steven Chambers PLLC | R. Steven Chambers PLLC
    No. "Null and void" means the contract never existed. The contract might be voidable (meaning you can get out of it) or the contract might be breached by the bankruptcy filing or it might be that the bankruptcy has no effect. It depends on what the contract is for and whether the bankruptcy affects the other party's ability to perform.
    Answer Applies to: Utah
    Replied: 5/16/2016
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    Just because on the bankruptcy.
    Answer Applies to: Florida
    Replied: 5/16/2016
    Danville Law Group | Scott Jordan
    No, unless there is some language in the contract that provides that bankruptcy is a terminating event. You should have a business attorney review your contract for a more determinative opinion.
    Answer Applies to: California
    Replied: 5/16/2016
    Garner Law Office
    Garner Law Office | Daniel Garner
    Too many possible scenarios to address in a forum like this. You should consult with an attorney who understands both bankruptcy and business law to protect your interests in the contract.
    Answer Applies to: Oregon
    Replied: 5/16/2016
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