I have a question about an asset I mentioned in my previous thread. Here's the story:
In 1994, my mom bought a rinky-dink convenience store in Park City, MT (population 1,100). The store is on a leased lot. She organized her business as an S corporation, and my dad and I are listed as the two stockholders, each with a 10% share. I paid NO cash into the store, and my "ownership" was basically symbolic as she only listed me so I could be an officer for her corporation. I have never received any cash or dividends, nor would I receive anything if she sold the store. I have had to file "gains or losses" with my taxes every year, regardless of the fact that I received or lost no money.
My attorney has asked me to be ready to answer questions about this "asset" with the trustee at our 341 meeting. She told me to get a letter from a local realtor discussing the listing price of the property if my mom were to sell it. The realtor said she would probably list the store for $140,000. The attorney said that the Trustee would be interested in what my 10% share of the sale proceeds would be. In my opinion, $14,000 is a lot of money.
Obviously, if my mom sold the store, I wouldn't see one penny, but I know that my 10% "ownership" legally means that it has some value.
My question is about when a trustee decides to go after an asset? Would the trustee consider making my mom sell her store to get that money? The store is not really worth much, but it is her livelihood. It's how she makes her living. If selling the store isn't an option, would I have to convert to Chapter 13?
If we do have to convert to Chapter 13, how would we make payments when our monthly expenses are MORE than our income. We barely get by, but we manage to make it.
I'm just terrified that we're going to be forced out of Chapter 7 by this "asset" that has zero value to me.
Can anyone help me understand what I'm up against?
In 1994, my mom bought a rinky-dink convenience store in Park City, MT (population 1,100). The store is on a leased lot. She organized her business as an S corporation, and my dad and I are listed as the two stockholders, each with a 10% share. I paid NO cash into the store, and my "ownership" was basically symbolic as she only listed me so I could be an officer for her corporation. I have never received any cash or dividends, nor would I receive anything if she sold the store. I have had to file "gains or losses" with my taxes every year, regardless of the fact that I received or lost no money.
My attorney has asked me to be ready to answer questions about this "asset" with the trustee at our 341 meeting. She told me to get a letter from a local realtor discussing the listing price of the property if my mom were to sell it. The realtor said she would probably list the store for $140,000. The attorney said that the Trustee would be interested in what my 10% share of the sale proceeds would be. In my opinion, $14,000 is a lot of money.
Obviously, if my mom sold the store, I wouldn't see one penny, but I know that my 10% "ownership" legally means that it has some value.
My question is about when a trustee decides to go after an asset? Would the trustee consider making my mom sell her store to get that money? The store is not really worth much, but it is her livelihood. It's how she makes her living. If selling the store isn't an option, would I have to convert to Chapter 13?
If we do have to convert to Chapter 13, how would we make payments when our monthly expenses are MORE than our income. We barely get by, but we manage to make it.
I'm just terrified that we're going to be forced out of Chapter 7 by this "asset" that has zero value to me.
Can anyone help me understand what I'm up against?
