How are Intangible Assets Treated by the Bankruptcy Court?
Hi, my name is Wayne Mortensen and I am a bankruptcy attorney here in Tucson, Az.
I want to talk to you about intangible assets in bankruptcy. You know, a lot of times people come in, and I have seen this happen a lot in bankruptcy court, some of my other videos have talked about if, for example I just had a video discuss books of business, but many times there are intangible property that comes in play in bankruptcy court. I will give you one nightmare scenario story that happened. It wasn’t my case. I was sitting in bankruptcy court and a software development guy who was developing software from his home and he had developed some type of proprietary software. Well, it hadn’t been sold, it hadn’t been published, nothing had been done with it, but he disclosed it to the trustee, which he should because it is an asset and he disclosed that he was working on it.
The trustee promptly said “I want that on CD, I want that on a hard drive and I want you to deliver that to me so that I can go out and try to market it.”
It is really important that you understand what intellectual property is and what intangible assets are in the context of bankruptcy and how those assets play out. If you have a concern, or if you think you have a intangible asset that is in jeopardy, it probably is. It is a good time to pick up the phone and go see an attorney who has been practicing and understands what the Chapter 7 trustee can do.
My name is Wayne Mortensen and I have been practicing bankruptcy law in Tucson, AZ for over 19 years. Please give us a call. We would love to give you some advice.