Chapt 7 exemption questions
Hello.
Brief Background:
Small music service business in NYC near 9/11 area... 2 partners/20yrs. Drastic fall in clients after 911. We hung on, used savings, retirement funds, tried to pay CC's. Missed payments, interest ballooned. Personal credit card debt between 2 partners is about $50000. Stopped paying old debt. Fighting off collectors and court summons pro se... successfully stalling.
Business has no debts under its name. Clients slowly returning...looks good..we are just getting by. Business Assets are not more than $10,000 of old music recording/playing, computer equipment. Personal Assets: No Homestead or luxury items, have old car (1997 Altima..falls under exempt category)
We are a partnership for this business for 20 yrs. and a partnership for
other matters for longer. We are not married. Early this year, my partner filed papers for incorporation thinking it would protect the business. We never dissolved the old partnership. We do not want to dissolve our business, as it is our sole means of income.
We cannot resusitate the business if we have to pay the debt.
We are told by attorney that trustee can dissolve partnership or Corp.
and sell assets. Says we need appraiser ($500). Lawyer filing fees $1850 for both. He says that the lower the assessed value the more likely that the trustee will not sell the assets because it is not worth his time to try to sell.
How likely is this? I do not like surprises.
We are looking at Pro Se filing and at Internet paralegal
preparers as well. (any suggestions for paralegal preparers?)
Questions:
Can a trustee dissolve a partnership or corp. and sell assets that
belong to a 3rd entity?
If the business is a Corp. would the shares be converted to tangible
assets or how are shares handled? The business does not want to
declare bankruptcy, its debts were always paid first from its earnings.
Exemption Confusion:
In some sites I found for NYS exemptions, the limit amounts vary.
bankruptcypreparers.com have higher limits for NY than othe web sites.
I asked them about this and they said I had to find out for myself!
I know that the homestead exemption went from $10,000 to $50,000. (The lawyer did not know this)
There was a $2500 cash exemption in lieu of the $10,000 homestead exemption.
I have looked and cannot find if the cash exemption in lieu of homestead was also raised.
Supposedly there still is:
up to $5000 for personal exemptions including musical instruments, and gear.
Can some of our recording equipment be placed here?
$600 for tools of trade, can some of our recording equipment be placed here?
Lease deposits ..we have a business space lease deposit of $5000 can it be placed here? The lease is not assignable.
There is an exemption in most states including NY under Misc. that is
called "exempt partnership property" Code 51 (NY). I even found the actual law.
What can I include in this section? It is not clear. Can this be away of saving
business property from being taken? The lawyer did not mention it and
the internet preparers did not respond to my questions about this exemption.
If I can include some of our musical equipment used for business (and personal...he is a musician and I do design) in the above exemption categories, does this go toward lowering our assets that can be
sold off by the trustee.
I have spent several evenings reading throught this web site.
I hope someone has answers or points me in the direction where
I can find them.
Thanks all.
Brief Background:
Small music service business in NYC near 9/11 area... 2 partners/20yrs. Drastic fall in clients after 911. We hung on, used savings, retirement funds, tried to pay CC's. Missed payments, interest ballooned. Personal credit card debt between 2 partners is about $50000. Stopped paying old debt. Fighting off collectors and court summons pro se... successfully stalling.
Business has no debts under its name. Clients slowly returning...looks good..we are just getting by. Business Assets are not more than $10,000 of old music recording/playing, computer equipment. Personal Assets: No Homestead or luxury items, have old car (1997 Altima..falls under exempt category)
We are a partnership for this business for 20 yrs. and a partnership for
other matters for longer. We are not married. Early this year, my partner filed papers for incorporation thinking it would protect the business. We never dissolved the old partnership. We do not want to dissolve our business, as it is our sole means of income.
We cannot resusitate the business if we have to pay the debt.
We are told by attorney that trustee can dissolve partnership or Corp.
and sell assets. Says we need appraiser ($500). Lawyer filing fees $1850 for both. He says that the lower the assessed value the more likely that the trustee will not sell the assets because it is not worth his time to try to sell.
How likely is this? I do not like surprises.
We are looking at Pro Se filing and at Internet paralegal
preparers as well. (any suggestions for paralegal preparers?)
Questions:
Can a trustee dissolve a partnership or corp. and sell assets that
belong to a 3rd entity?
If the business is a Corp. would the shares be converted to tangible
assets or how are shares handled? The business does not want to
declare bankruptcy, its debts were always paid first from its earnings.
Exemption Confusion:
In some sites I found for NYS exemptions, the limit amounts vary.
bankruptcypreparers.com have higher limits for NY than othe web sites.
I asked them about this and they said I had to find out for myself!
I know that the homestead exemption went from $10,000 to $50,000. (The lawyer did not know this)
There was a $2500 cash exemption in lieu of the $10,000 homestead exemption.
I have looked and cannot find if the cash exemption in lieu of homestead was also raised.
Supposedly there still is:
up to $5000 for personal exemptions including musical instruments, and gear.
Can some of our recording equipment be placed here?
$600 for tools of trade, can some of our recording equipment be placed here?
Lease deposits ..we have a business space lease deposit of $5000 can it be placed here? The lease is not assignable.
There is an exemption in most states including NY under Misc. that is
called "exempt partnership property" Code 51 (NY). I even found the actual law.
What can I include in this section? It is not clear. Can this be away of saving
business property from being taken? The lawyer did not mention it and
the internet preparers did not respond to my questions about this exemption.
If I can include some of our musical equipment used for business (and personal...he is a musician and I do design) in the above exemption categories, does this go toward lowering our assets that can be
sold off by the trustee.
I have spent several evenings reading throught this web site.
I hope someone has answers or points me in the direction where
I can find them.
Thanks all.
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