Legal Question in Bankruptcy in California

Can a lien be placed on intellectual property by Bankruptcy Trustee?

Followup to my question ....

''I was a software developer contractor for a corporation that claims to be financially insolvent, though not in bankruptcy. As such, they are not paying their invoices to their contractors. I have a substantial unpaid invoice. They do not have much real property assets. Can a lien be placed on their intellectual property?''

I may be forced into Chap 7 bankruptcy due to the non-payment. As such, the Account Receivable becomes a part of my bankruptcy estate. If the company does not have the funds to pay the Trustee, can the Trustee then place an immediately lien on the company's IP without first going to court and obtaining a judgment?


Asked on 3/11/09, 7:50 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: Can a lien be placed on intellectual property by Bankruptcy Trustee?

If the company's not in bankruptcy, the trustee cannot place a lien on another's property. However, its creditors can do an involuntary bankruptcy of the corporation for that purpose, if appropriate.

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Answered on 3/12/09, 3:01 pm


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