Legal Question in Bankruptcy in Utah

I was recently paid on a debt from someone who may file for bankruptcy

I was a partner of a company of which I used a personal credit card for business transactions. I left the company 10/16/2000 and have not removed my name as a principle on the company because I felt he would not pay the ballance if I did. I sent a letter of resignation to the state and the company on 03/19/2004 as directed by the UT State Division of Corporations. This debt was settled 03/19/2004 by the transfer of ownership of a company vehicle. If my soon to be X partner files for bankruptcy in the near future will I be held accountable for anything regaurding the bankruptcy if the state pulls me off the company as a 15% Partner / Member before he files? Can this vehicle be taken from me by creditors if he files within the next 90 days? I was told payments made within 90 days can be recovered by the creditors if this is true what would you suggest I do as I feel I am a Creditor to the company?


Asked on 3/22/04, 1:20 am

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: I was recently paid on a debt from someone who may file for bankruptcy

A simple answer is difficult based on the facs you gave. The Bankruptcy Code is a fairly complicated code and provides different answers depending on the facts. In your case you could be considered an insider, which means that you could be held liable for excess payments up to two years after the date of the payment. I fyou are not considered an insider the 90 day window probably applies. If you have transferred title to your name, the vehicle cannot be taken from you without a court order. Your options really depend on whether and how quickly the ex partner decides to file. If he files soon you may have problems, but if he waits as long as possible you may be ok. Without know more specifics there a complete answer is not possible - and goes beyond the scope of this website. I suggest that you talk to your partner and find out what his plans are, then consult with a knowledgeable attorney.

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Answered on 3/22/04, 10:57 am


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