If a company is sold, and does not pay it's debts can it go into liquidation?

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If a company is sold, and does not pay it's debts can it go into liquidation?

even if there is money int he bank or is there a way round this problem??

2007-01-17 06:37:47 · 3 answers · asked by guy b 1 in Business & Finance ➔ Other - Business & Finance

3 answers

If the company was sold then all of the assets and liablities in the sales contract are the new owners responsiblitiy. You may qualify for a Chapter 7. Contact a Consumer Credit Counseling Service.

2007-01-17 07:15:10 · answer #1 · answered by dancing11freak 2 · 0⤊ 0⤋

Depends on the terms of the contract at the time of transfer. If the company has bought the assets and not the liabilities, they are responsible for the trade debts of the previous company.

2007-01-17 18:15:48 · answer #2 · answered by Anonymous · 0⤊ 0⤋

I believe so. Though often pensions for the bosses are ring-fenced. Which is wrong.

2007-01-17 06:43:06 · answer #3 · answered by I'm Sparticus 4 · 0⤊ 0⤋