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Can business name be sold?

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    Can business name be sold?

    I am selling my business and the buyer wants to know if the name can be sold as an asset along with the actual furniture assets, so he can use it. Filing personal chap 7- non consumer.

    #2
    Yes. The name is an asset like any other (okay, technically, it is an intangible asset). But, yes, it can be sold.

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      #3
      if they take on the new- do they also incur the debt associated with the name? That has been the confusion. If the business has secured assets that are sold (money is used strictly to pay them) and the name is sold, business technically looks like it changed hands. So, would the new owners incur the liablilty?

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        #4
        obviously they would not be sold the corporation-just the assets and would have their own business structure

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          #5
          The question I think you are really asking is with respect to the issue of "successor liability". The answer depends heavily on state law (and to some extent what federal circuit you are in). If, for example, you owed money to a union pension fund in the 6th circuit (i.e. Michigan), the odds are pretty good that the courts in that circuit will tend to find that the asset purchaser who is using the assets of the old business, who is still selling the same product lines and where the name of the old business has not changed ... despite the fact it was an asset sale with notice, the purchaser is likely to be found a successor in interest ...

          Indeed, I had a case in the 6th circuit where the assets were purchased out of a bankruptcy proceeding "free and clear" and the union was not completely unsuccessful in chasing the successor entity.

          Outside of the union context, however, successor liability is far more difficult to prove where there has only been an asset sale.

          Bottom line -- talk to an attorney in your jurisdiction about your specific question.
          The opinions above are not and should not be considered legal advice or establish an attorney/client relationship. In addition, I have no knowledge of any confidential facts, am not a debt relief agency, and probably don't have the right to practice in your jurisdiction anyway ... so, please talk to your own attorney.

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            #6
            Thanks for the advice. Think I'll just sell the assets. Not like I would get to keep any of the "business name" money anyway.

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              #7
              There is a value on the business name - and selling it insures that you as the current owner can not open up the same business and continue to make money on the good will that was established under that name.

              Depending on the business/name, start at $1 and go up from there!
              what's he willing to pay? ? ? is the question.
              Much thanks for all the support and information I receive on this forum.
              Chapter 7 filed 11/21/2008
              341 Meeting 01/05/2009
              Discharged 03/06/2009

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                #8
                i think you should sold it..

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