Will creditors go after the people I sell my business to? 2 Answers as of August 16, 2010

I am a sole proprietor of a small business but I am planning on filing for bankruptcy due to business and personal credit problems. I am planning on either selling or gifting my business to a family member. Will the creditors still go after the business after it’s been given away?

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Law Office of Barbara Seeley Curtis
Law Office of Barbara Seeley Curtis | Barbara Curtis
Yes, the creditors can still go after the people you sell your business to.
Answer Applies to: Florida
Replied: 8/16/2010
Klinger Law Center
Klinger Law Center | Linda Klinger
Selling or gifting any assets just prior to filing a bankruptcy is a BAD idea. If you sell it or gift it to an insider (family member) the bankruptcy trustee can undo the transfer and then pay your creditors with the proceeds from liquidating business assets. Before you transfer any assets or sell your business, I recommend that you meet with an attorney and obtain thorough legal advice particular to your situation, not just an answer as to general legal principals from a posting. You should consult with an attorney local to your area.
Answer Applies to: California
Replied: 8/6/2010
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