vanstealth
Junior Member
What is the name of your state? Washington
My employer filed for out of court Chapter 7 (going out of business) on 4/04. This transaction was executed as "Assignment for Benefit of Creditors." The owners then started a new company in 4/04 which purchased all the assets, trade names and trademarks from the old company. This new company has a new name but has a dba using the old company name. This purchase was made with a combination of cash and assumption of the old company's bank debt. Prior to this filing the old company rolled out a new sales comp. plan on 1/04. Since the comp. plan would affect when sales would be paid a transition period was proposed. This transition period began 2/04 and would be over a 3 month period. Management decided to advance each sales person a predetermined amount for 2/04, 3/04 and 4/04. Then recoup the difference between actual earned over 3 months starting in 6/04. My question is can the new company legally recoup any monies paid out by the old company that filed Chapter 7?
My employer filed for out of court Chapter 7 (going out of business) on 4/04. This transaction was executed as "Assignment for Benefit of Creditors." The owners then started a new company in 4/04 which purchased all the assets, trade names and trademarks from the old company. This new company has a new name but has a dba using the old company name. This purchase was made with a combination of cash and assumption of the old company's bank debt. Prior to this filing the old company rolled out a new sales comp. plan on 1/04. Since the comp. plan would affect when sales would be paid a transition period was proposed. This transition period began 2/04 and would be over a 3 month period. Management decided to advance each sales person a predetermined amount for 2/04, 3/04 and 4/04. Then recoup the difference between actual earned over 3 months starting in 6/04. My question is can the new company legally recoup any monies paid out by the old company that filed Chapter 7?
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