Successor liability is a mere continuation of its predecessor liability and the successor is held liable for obligations of the predecessor if any of the following factors are present:
Arm’s length asset transfer means “within the reach of buyer and seller.” There must be no confidentiality connection between any buyer and any seller.
Under the Uniform Fraudulent Transfer Act if a transferee fails to act in “good faith” then the transferee becomes liable. If any debtor entity assets are transferred or purchased, third party collection should commence immediately.
Should credit department personnel determine that any factor is present to pursue successor liability, then the claim should be placed with Williams & Williams, Inc. immediately.