Legal Question in Business Law in Massachusetts

Selling Collateral

Because my landlord did not assign the lease when I sold my bussines I had to close and did not pay my SBA loan. I had to sell the assets to be able to survive, the Bank now wants to know where the assets are. What can they do about it? I will be filling bankrupcy soon.


Asked on 7/17/06, 2:47 pm

2 Answers from Attorneys
Lawrence Graves Coolidge & Graves PLLC

Re: Selling Collateral

You clearly have a 24kt mess on your hands, the complete facts of which should be presented to counsel specializing in bankruptcy. Not my area of expertise, but I can refer you to someone if you like.

Best wishes,

/

LDWG

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Answered on 7/17/06, 2:56 pm
Barry Levine Law Office of Barry R. Levine

Re: Selling Collateral

Assuming the bank/sba had a perfected security interest on the assets of your business, the lien would follow any sale of these assets. In other words, the purchaser of the assets could find the bank/sba asserting a claim against the assets regardless of whether or not you claimed to sell them free and clear. From the bank/sba's point of view, what the proceeds of the sale of the assets were used for could be important. I would be pleased to discuss your situation with you at a mutually convenient time. Please call my office to set up an appointment.

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Answered on 7/17/06, 4:32 pm


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