Legal Question in Business Law in New York
Say company ABC has a few judgements against it, then it becomes dissolved. The same owner now wants to create new company XYZ, doing the same business as before and have it dba as ABC. Can the past creditors and debts from ABC come after the new company XYZ and files claims against XYZ?
2 Answers from Attorneys
Under some circumstances, yes.
Generally, the answer is no, especially if company ABC was properly dissolved under the NY Business Corporation Law. However, if company ABC transferred its assets to company XYZ without receiving adequate consideration (money), then the transfer of assets without sufficient consideration would be deemed fraudulent under the NY Debtor and Creditor law. This would allow ABC's creditors to file a claim against XYZ corporation.
Mike.
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