Most states have provisions for bulk transfers of assets under their Uniform Commercial Code. The party transferring the assets must comply with the provisions of the Bulk Transfer Act in order to avoid liability for the transfer. Although the states vary in their procedues to effectuate the Bulk Tranfer Act, it  usually requires notification to creditors before the transfer, and requires them to present their claims. Whether they get paid or not is another matter.

I was involved in a case like this several years ago against a trucking firm in Bridgeport, Ct. I had a suit pending when the Defendant notified my client of a bulk transfer of its assets. I had to attach something fast so that the lien would travel with the assets, and the transferee would take the property subject to the lien.

Absent compliance with the Bulk Transfer Act statutory and common law remedies can be sought such as suing both the transferor and the transferee for a wrongful transfer. Compliance with the Bulk Transfer Act is a valid defense to these actions. Another defense would be the Defendant's claim to be a Bona Fide Purchaser in which he bought the property for value without notice of any claims.to post a reply: login - or - register