Pitney Bowes

[justbroke]

chiming in here with a related question .......what about if the new corporation purchased some (not all) of the assets of the old corporation at FMV in cash, and the old corporation used those funds to pay out to various creditors as part of a liquidation prior to dissolution?

Now, that would be a good scenario.

I would not expect any trouble for a rather small corporation with hardly any assets upon dissolution. My concern was more for a small corporation/LLC to have a good amount of assets and to ignore it's creditors and just transfer the assets to a new corporation. I don't really know what they would mean anyhow, but it look funny to me.

[BigJohn]

Can this be done while in Ch13? I assume you have to let the Trustee know you sold the business, right?

[justbroke]

Can this be done while in Ch13? I assume you have to let the Trustee know you sold the business, right?

It depends on the organization of the business, and what your stake is in the business (how many shares you own). This can get tricky, because LLCs and other types of corporations are entities all and of themselves.

If you sold an LLC, your stake in the LLC, then you certainly need to let the Trustee know before doing so, because this could be an issue.

[BigJohn]

It is a corporation and I own almost no stock - less then 1%.

I would like to start another corporation with less then 1% stock ownership and have the new corporation buy only part of the assets of the old corporation. I would use that money to pay taxes, unemployment, workmen's compensation, etc for the old corp and then dissolve the old corp.

In Arizona, if you buy a business, you just might be liable for all of the old businesses debts - that is why I would have the new corp buy only some of the assets.