Asset Buy Back

[Lexie]

My husband bought back his company from my personal bankruptcy and now he is being sued for fraudulent transfer. Is this legal?

[keepmine]

A few details might help?
Who did he purchase the company from-you or the bk trustee? Who is suing him?

[Lexie]

He purchased from the trustee

[Lexie]

The creditor who received monies from my BK is suing him for the balance

[frogger]

Not enough info:

He purchased the company from the bankruptcy estate via the trustee.
Now being sued for fraudulent transfer?

Is the trustee and judge being sued as well?

The creditor - I presume their debt was discharged? Now they are suing for a discharged debt?

Something smells really funny around here...............

[DebtEnder]

SO creditor gets money from TT. Part, if not all this cash came from husband, via purchase of assets of the BK estate (The business entity). Creditor is now suing you because what, they didn't get enough cash from the TT? To me it sounds like they should be barking at the court. If they feel assets were sold under value that is not your concern.

Have you contacted the TT and made them aware of this issue? As if it was a fraudulent transfer it was expedited via the BK court.

[Lexie]

Creditor is NOT suing me, he is suing my husband and his company.

[DebtEnder]

Did your husband owe money, did the company owe money to the creditor? Please give us more info here. One line blurbs is going to make this a very long drawn out process.

[Lexie]

No, my husband nor his company owed any money to the creditor.

[HHM]

Lexie, you are familiar with the situation, we are not. To provide any guidance at all in this very odd situation, please sit back and describe the situation to someone who has no idea who you are and what is going on (which is the case).

There are some confusing issues.
1. You state your husband bought back "his" company from "your" BK. I am guessing there was some measure of joint ownership and your husband did not file BK.
2. The creditor in question is one of "your" creditors? You state that neither the company nor your husband owe the debt? So, who owes the debt.
3. Question: in what court is he being sued? BK court, State Court?

Is the creditor represented by an attorney? If what you say is true, the cause of action makes no sense. You can't have a fraudulent transfer in a BK redemption scenario. Maybe if the assets were so undervalued by you and the trustee that the amount paid is not a reasonable, fair market value? Even that would be a stretch.

Maybe the more interesting question, where did your non-filing husband get the money to pay for the business interest? Maybe that is the issue?

As was stated earlier, something is not adding up.

But if that is really what happened, it should be a fairly simply matter of filing a Motion to Dismiss for Failure to State an Actionable Claim. The BK cuts off the claim.

[despritfreya]

I agree with HHM. The devil is in the details. Maybe you can tell us exactly what the complaint alleges, of course, leaving out any identifiable information.

A fraudulent conveyance action usually means someone is attempting to recover money or property that was transferred without sufficient consideration in an effort to hinder or defraud creditors. If an asset was purchased out of a bk through a bk sale by the Trustee, it should not be subject to recovery as the sale was a valid sale under the direction of the Court.

There is much you have to tell before we can wrap our thoughts around the issues in an effort to help. Do not be bashful. All we want to do is help, if we can.

Des.