Q: Client filed chapter 7 in the middle of a sale of their partnership - to the other partner. Does this affect the sale?
We have two clients, in Florida, that have a partnership. One partner decided they wanted out of that partnership so they instigated a sale of their half of the partnership to the other partner. The framework was in place for the sale and then they decided they needed to file Chapter 7 Bankruptcy before they signed the papers to finalize the sale. How does this affect the sale, if at all, to either partner. Thank you.
A: Yes. At a minimum, it stays the sale bc it is an asset of the estate. It may possibly still go thru, but only under the watchful eye of the court.
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