Questions about exemptions
My partner and I have had a small music service business in NYC that was adversely affected by 911 so that we struggled hard since then to stay afloat.
Between us we have about $50000 worth of unsecured personal debt.
The business has no debts or liens or loans, just regular bills like rent, electric etc.
The business was a partnership for 20 years then we incorporated this year
to an LLC in hopes of defending business equipment assets form judgements.
The partnership assets are not worth more than $7000 by our valuation.(the equipment is old audio and computer equipment)
The business is reviving as we have a great service, but the income cannot
handle the old debt. Right now it is just paying the every day bills.
We are hounded by CAs and emotionally drained by fighting off judgements.
We are preparing to file for bankruptcy 7.
We know that Chapt 7 is a liquidation process and are trying to keep
as much of our equipment as we can, as it provides our sole means of support.
We are told by an attorney that the trustee can dissolve a partnership or Corp. and sell its assets. He says we need an appraiser ($500). Lawyer filing fees $1850 for both. My understanding is that the trustee can include the
partner's interest into the "bankruptcy estate" but not the property of the partnership itself.
He says that the lower the assessed value of the business property, the more likely that the trustee will abandon the assets because they are not worth his time to try and sell.
How likely is it that a trustee would abandon assets? How necessary is it that we get an appraiser, can we present our own valuations?
Exemption Confusion:
Can we include personal music equipment that is used for both business and
personal under the personal exemptions.
My partner is an audio engineer/musician, can the business equipment he uses to record be placed under tools of the trade exemption?
NYS Expemptions:
up to $5000 for personal exemptions including musical instruments, and gear.
$600 for tools of trade.
Lease deposits are exempt.
We have a business space lease deposit of $3600 can it be placed here?
The lease is not assignable.
Under Misc. exemptions in NY, there is: "exempt partnership property"
Can I include other business property different from the $5000 limit for personal exemption under the "exempt partnership property" exemption?
It is not clear. Can this be a way of saving business property from being sold?
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/computer equipment used for business
in the above exemption categories, is it likely that
the trustee will challenge this?
Other Questions:
Can a trustee dissolve an LLC. and convert the shares to assets for liquidation?
We are not sure if we have the means to pay a lawyer, so does anyone have any experience with on line preparers?
Thanks for your help.
Between us we have about $50000 worth of unsecured personal debt.
The business has no debts or liens or loans, just regular bills like rent, electric etc.
The business was a partnership for 20 years then we incorporated this year
to an LLC in hopes of defending business equipment assets form judgements.
The partnership assets are not worth more than $7000 by our valuation.(the equipment is old audio and computer equipment)
The business is reviving as we have a great service, but the income cannot
handle the old debt. Right now it is just paying the every day bills.
We are hounded by CAs and emotionally drained by fighting off judgements.
We are preparing to file for bankruptcy 7.
We know that Chapt 7 is a liquidation process and are trying to keep
as much of our equipment as we can, as it provides our sole means of support.
We are told by an attorney that the trustee can dissolve a partnership or Corp. and sell its assets. He says we need an appraiser ($500). Lawyer filing fees $1850 for both. My understanding is that the trustee can include the
partner's interest into the "bankruptcy estate" but not the property of the partnership itself.
He says that the lower the assessed value of the business property, the more likely that the trustee will abandon the assets because they are not worth his time to try and sell.
How likely is it that a trustee would abandon assets? How necessary is it that we get an appraiser, can we present our own valuations?
Exemption Confusion:
Can we include personal music equipment that is used for both business and
personal under the personal exemptions.
My partner is an audio engineer/musician, can the business equipment he uses to record be placed under tools of the trade exemption?
NYS Expemptions:
up to $5000 for personal exemptions including musical instruments, and gear.
$600 for tools of trade.
Lease deposits are exempt.
We have a business space lease deposit of $3600 can it be placed here?
The lease is not assignable.
Under Misc. exemptions in NY, there is: "exempt partnership property"
Can I include other business property different from the $5000 limit for personal exemption under the "exempt partnership property" exemption?
It is not clear. Can this be a way of saving business property from being sold?
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/computer equipment used for business
in the above exemption categories, is it likely that
the trustee will challenge this?
Other Questions:
Can a trustee dissolve an LLC. and convert the shares to assets for liquidation?
We are not sure if we have the means to pay a lawyer, so does anyone have any experience with on line preparers?
Thanks for your help.
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