Fort Lauderdale, FL asked in Bankruptcy and Business Law for Florida

Q: Why am I being sued by the bankruptcy trustee for revenue I received from a company that filed for bankruptcy?

The company had a revenue share agreement of 50/50. This agreement started in 2011. He would do the marketing and I would do the service and support. So weekly we split the revenue generated in 1/2. All monies were going into my account and I would wire to him his share. We were supposed to merge companies in 2015, so all revenue generated went into his account and he distributed the revenue weekly. Now in 2016 he imploded and had to file for bankruptcy. I resumed control of all the revenue after he filed for bankruptcy and now the bankruptcy trustee has filed a lawsuit against my company. This doesn't make any sense to me.

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2 Lawyer Answers
Answered
  • Santa Rosa Beach, FL
  • Licensed in Florida

A: I strongly suggest that you speak with a bankruptcy attorney in your area as soon as possible. The Bankruptcy Trustee must feel that the agreement between you and the party you shared revenue with is not proper. Thus, you need to get an attorney to represent you to point out your role in the business and what you did to earn your share. I do think that time is of the essence.

Glenn B. Manishin agrees with this answer

Answered

A: Additionally, in federal bankruptcy the estate is entitled to overturn outstanding contracts and recover "preferential" payments made to some, but not all, creditors (of which you are one) within 90 days prior to the bankruptcy filing.

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