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Simple English definitions for legal terms

dump-buyback

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A quick definition of dump-buyback:

Term: Dump-buyback

Definition: Dump-buyback is a sneaky way for business owners to avoid paying their debts. They sell their business assets to a friend for a low price and then buy them back under a new business without the original debt. This is not fair to the lenders who are owed money and could be considered fraud.

A more thorough explanation:

Dump-buyback, also known as asset dump and buyback, is a method used by business owners to avoid paying off their debts. In this method, the business owners sell their assets to a friend at a lower price and then buy them back under a new business organization without the original debt. This way, they can get rid of their debt without actually paying it off.

Let's say a business owner owes $100,000 to a lender. Instead of paying off the debt, the owner decides to use the dump-buyback method. They sell their assets to a friend for $50,000 and provide financing for the purchase. Then, they buy back the assets under a new business organization without the original debt. This way, they have avoided paying off their debt.

This method is ethically questionable and could be considered fraud, depending on state statutes, judicial interpretation, and situational facts.

The example illustrates how dump-buyback works and how it can be used to avoid paying off debts. It also highlights the potential legal consequences of using this method.

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JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
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