Non payment for technology assignment

[jpc07]

I am located in California.

The CompanyA was an LLC in Nevada at the time the agreement was executed and subsequently refiled to be a Delaware LLC.



I assigned all rights to some technology to CompanyA. They made payments for a couple of years and I was taxed on that income as a long term capital gain.

Then CompanyA defaulted on payments and I began litigation to recover the assets for non-payment. However, prior to completion of that action CompanyA filed for Chapter 7 bankruptcy. I (my attorney) petitioned the BK court for the assets, but the court refused stating they would liquidate the technology asset as part of the corporate assets.

Is the unpaid balance of the assignment contract (less whatever amount the BK court may pay me as a creditor) now a Bad Debt for me or I am just left with nothing?

Thank you.
jp

[The Occultist]

Every state has different laws, and that's why it's important for you to answer the question that you chose to ignore: what state are you in?