Asset protection and Joint Property

Discussion in 'Legal Issues' started by seafire-sailing, Jul 29, 2006.

  1. #1
    New York State

    Three years ago, I bought a boat with my friend, who is the sole propriortish of a small company. It is "jointly owned". He (his company) has recently defaulted on a bank load, and on a credit card, and is being sued. Is my half interest in the boat in jeapordy? Can the boat be seized by his creditors?

    Seafire-Sailing
     
    seafire-sailing, Jul 29, 2006 IP
  2. mhdoc

    mhdoc Tauren

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    #2
    I believe his creditors can force a sale to get his share. If you bought out his share and he files within 90 days the transaction can be reversed by the bankruptcy judge.

    The rules may have changed with the recent revisions.
     
    mhdoc, Jul 29, 2006 IP
  3. marketjunction

    marketjunction Well-Known Member

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    #3
    Who own the the share, his company or him? If his company is an incorporation or LLC, there are not the same thing. If he was just a sole prop or partnership, then they are.
     
    marketjunction, Jul 29, 2006 IP