Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

dump-buyback

Read a random definition: wage assignment

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.

DUI | durable power of attorney

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
LSD+ is ad-free, with DMs, discounts, case briefs & more.