Family Corporation
Any idea regarding the likelihood of a chapter 7 trustee actually attempting to sell a small minority interest in a family corporation (s-corp and 10% interest). The corporation makes no money (K-1s to prove), but it does own some vacant property (10% of which would be worth maybe $35,000). Of course, the trustee can't force the corporation to sell any assets, so would it just abandon the stock back to the debtor?
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This is a "touchy" question......
The Total Corporaton is out of the reach of the Trustee, but your portion is may not be......
The Trustee can request that your portion be sold back into the Corporation (the rest buy you out)...... to get his hands on the money. Or he can tell you to pay him upfront for your portion of the corporation (in order for you to keep it)
Often is land or property is tied up among 3 -5 people the trustee will weigh his options (how much trouble/cost for him to get his hands on it).... If he decides its not worthwhile the effort me often abandons it back to you...
Did you check to see if your portion of the Corporation was exempt.....?
Did you check with an attorney on this?
If not, you really need too.....
Keep us informed.Minny
"It's amazing the paths that our feet sometimes follow in life".
My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.
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