vanstealth
Junior Member
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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?
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?