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If that helps out at all, it's a fraudulent transfer that would get reversed by the bankruptcy court. The business's creditors are entitled to up to 100% of the
by ThrustVectoring 7y ago
If that helps out at all, it's a fraudulent transfer that would get reversed by the bankruptcy court. The business's creditors are entitled to up to 100% of the value of the assets that the business owns, you can't just sell them off before declaring bankruptcy.
- eigenvalue 7y agoThat applies to hard assets, like a truck, inventory of hardware, power tools, etc. The real value in a business such as this is in the local brand recognition (usually applied to the name of the proprietor), a reputation for honesty and good service, and a list of customers with their contact information. So in that sense, a father probably could reasonably transfer or transition ownership to his son, it would just have to be done in a multi-step, gradual manner.
- ThrustVectoring 7y agoProbably the easiest way of going about it is just to operate "Plumber Bob's Plumbing" and "Plumber Bob Jr's Plumbing" as separate entities for a bit, and start referring business to the son's firm.
- eigenvalue 7y agoExactly. Very hard to argue in court that this constitutes a fraudulent conveyance.