Legal Question in Business Law in Iowa
small business closing
I closed my pet shop and will file bankruptcy next month. The previous owner wants to reopen it under the same name (which I own) and buy certain pieces of inventory but not full price. All inventory and hardware are collateral for a loan (also a 2nd on my home). Even if he pays enough for the loan, I can't pay all creditors and will still be in bankruptcy. What are my obligations/options?
1 Answer from Attorneys
Re: small business closing
You can't sell the inventory to the previous owner without the secured creditor's say so. Any money that comes in will end up being property of the bankrupt estate, if and when you file.
Beyond that I'd say you'd best consult with your bankruptcy attorney about the potential effects of filing under the conditions you describe.
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