Can I liquidate assets I have in my business & then file bankruptcy?
July 30, 2010 
1 Comment
Confused asked:
Can I liquidate the assets I have inside my business to pay off other debts that I have to recoup the money I have lost and then file bankruptcy on the rest of the loan? And if the contents of the business was part of the colleteral for the loan then I assume I probably can't do this….
Can I liquidate the assets I have inside my business to pay off other debts that I have to recoup the money I have lost and then file bankruptcy on the rest of the loan? And if the contents of the business was part of the colleteral for the loan then I assume I probably can't do this….
If you do, the bankruptcy court may set aside the sales and try to get the property back from whomever you sold it to. If you are going to go into bankruptcy, you should just take all of your debts with you and they will sell off you assets as they need to in order to pay creditors in the order they are entitled to. Probably the creditors that you would be paying off aren't the ones that should be paid first in bankruptcy.