K and S Rockets site pushing to eBay now....

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I don't know the particulars of this business, but generically, this sort of thing is handled quite easily under the Uniform Commercial Code (bulk sales). The laws differ by state, but you can basically file a UCC lien with a state that gives you priority over other debtors who file afterwards. This is a very common occurrence and prevents business owners from liquidating their personal property and keeping the money. If you ever buy a business then be sure to get a UCC bulk sale agreement form from the seller.

Even though the business seller might sell the 'assets' of a business, those assets would then be encumbered. It's much cheaper than hiring an attorney for a lawsuit. The same thing could have happened with Sheri's whatever rockets. The purchaser of those assets could really have been stuck if the debtors followed through with UCC filings.

I've sold many businesses on behalf of clients, and this sort of thing is a rather routine process.
 
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