BigMouthWino
Member
The bottom line is that the trustee doesn't HAVE to pursue the assets of the business. If the parents fail to state in their bankruptcy paperwork how they conveyed the assets to their son and it comes out in the proceedings that is fraud and the bankruptcy is likely to be dismissed. It doesn't matter if you lie to the court about $1 or $1,000,000 the outcome is the same - dismissal.On a few bases. Tortious interference with business, theft of trade secrets and there may be other things. The customer list is the property of the business. Would the parents be successful? I don't know. Would a bankruptcy trustee pursue the value of the business transferred? I don't know but it is possible that he could. It could be considered fraud for the parents to do this. Would a trustee pursue these "assets"? Maybe. Depends on the specfics of the entire situation but it is possibility.