Posted on: 04th Sep, 2009 02:59 pm
I am interested in buying a business in Chapter 13 only. Seller owes $300k to creditors. He wants to sell the business a S corp for 400k plus. Business best case is worth $320 k. Two choices. 1) offer $200k and take business assets only, if approved by Trustee/Court under opposition of Seller and assume a fight. What is the success probability to get matter a fair shake with Trustee/Judge? I assume the business will be closed when transfered and all customer records will be lost if forced. This is reason for lower price. Or 2) Offer enough to get all creditors paid 100% and a little for Seller to buy the business and the assets. Seller is not realistic on price and I can not get a voluntary PA signed due to Seller keeps raising the price. Can the court compel the sale of a business asset in Chapter 13 at a price Seller does not realize any money and sellers get 70% on claim. Can court/trustee force sale if creditors are compensated 100%? Seller is 2.5 years in the plan and current on payments. Any ideas, this clown has jerked me around for months now, and has had me redrafted the terms over 5 times now always for more money at the last minute after agreeing to sign. Any ideas???? This seems unfair to the creditors not to force him to sell. It is a business, not his house.
Hi marcstark!
Welcome to forums!
It will be the court's discretion as to what steps they will take if you pay off the creditors. In my opinion, you should contact an attorney and ask him to deal with the bankruptcy trustee. This will help you know whether or not your deal will go through. In Chapter 13 bankruptcy, the property is not sold off, rather the borrower is given a repayment plan to pay off the dues.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It will be the court's discretion as to what steps they will take if you pay off the creditors. In my opinion, you should contact an attorney and ask him to deal with the bankruptcy trustee. This will help you know whether or not your deal will go through. In Chapter 13 bankruptcy, the property is not sold off, rather the borrower is given a repayment plan to pay off the dues.
Feel free to ask if you've further queries.
Sussane