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I have a contract that I want to assign to another company
Sent to Legal Experts February 25 05:41 PM

I have a contract that I want to assign to another company for no $$ or consideration. because, I will be putting the company into Bankruptcy soon. This contract has no $$$ value. Covers service yet to be started. An certain intellectual rights discussed and agreed on.    Client has full knowledge of possible assignment and agrees with the change.   So the question ... can I assign this contract

 

Optional Information:
Little Rock, Arkansas

Customer (name blocked for privacy)
Status:  Closed   Value: $30
Answer
February 25 5:48 PM (7 minutes and 1 second later)
         
ACCEPTEDCheck Mark
Typically, yes, you can enter into an assignment agreement. Sometimes, it may be more effective to enter into a novation (Terminate and replace the old contract with a new.)

If there is some benefit to the bankruptcy estate being lost, however, the trustee in the bankruptcy case could attempt to avoid the assignment.

One other option might be to simply assume the contract in the bankruptcy, exempt the benefit, and then if there is no objection to the exemption and the assumption is allowed assign the contract afterwards. However, this can be a little bit more complex procedurally.

In any event, the assignment would need to be listed and described on Schedule G and in the Statement of Financial Affairs #10.

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DISCLAIMER - This answer is not legal advice. No attorney-client relationship is formed. The information provided is for educational purposes only. For specific advice regarding your situation, please consult a qualified attorney in your area.
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CALawyer -- Lawyer (JD) -- 100% Positive Feedback on 610 Legal Accepts
Graduated Magna Cum Laude (Law School), Graduated Undergraduate at 19 Years of Age.
Reply
February 25 6:03 PM (14 minutes and 44 seconds later)
         
Reply to CALawyer's Post: Is there a time limit to assignment and the recording of it on the BR ...example, I assign today but do not file for 6 mos. do I claim the contract action .. or is it considered long before BR action
Customer (name blocked for privacy)
Answer
February 25 6:28 PM (24 minutes and 59 seconds later)
         
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CALawyer -- Lawyer (JD) -- 100% Positive Feedback on 610 Legal Accepts
Graduated Magna Cum Laude (Law School), Graduated Undergraduate at 19 Years of Age.
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