How much to offer trustee to buy back inventory?

[purplepea]

Hello!
I had a sole proprietor gift shop that we had to close. We filed a chapter 7 which was discharged in June, but case still not closed as I have non exempt inventory.

The wholesale cost of my remaining inventory is approx 26k. It consists of gifty type items, magnets, paperweights ornaments, tiles, wind chimes, some stemware, pottery & glass stuff--

The trustee finally came by today to look at it and said they would come with a truck and just load it and take it. He did make a comment that I must have had "quite a markup" for 26k worth,--the inventory is nice quality but they didn't actually look in any of the boxes. I took that as he wasn't that impressed, or that he thought the 26k was the retail price, I'm not sure. I listed it as wholesale cost in my paperwork.

I asked about buying it back, he said to make an offer through my attorney, and they would counter or not.

Question-what percent on the dollar should I offer? If he were to go through a liquidator, what' % of wholesale cost is common, and how much in fees does a liquidator usually collect? Are they usually willing to take a payment plan and for how long would be reasonable?

Thanks!

[msm859]

10%

[AngelinaCatHub]

I was about to say even less than 10 as in this economy, who does trinkets? Why do you think you went out of business? If you go to yard sales and container auctions, this kind of stuff is near twentyfive cents. Sorry to be so frank, but let's put it in perspective. The Trustee would be pleased at ten if not less, or tell him five and if not acceptable, sell it himself. I'll bet you will get it at five. If you do, you owe me a beer. LOL 'Hub

[justbroke]

If they don't like 10%, just go to the auction and offer 5%.

[purplepea]

My attorney called the trustee's assistant to fish around a bit, she seemed to think he'd take between 1500 & 2000, so we put in an offer of 1750, hopefully will hear something by monday--
Thanks ya'll!

[GWBcasualty]

My attorney called the trustee's assistant to fish around a bit, she seemed to think he'd take between 1500 & 2000, so we put in an offer of 1750, hopefully will hear something by monday--
Thanks ya'll!

How did it go?

I think you should have listed it at liquidation value (less than 20% of wholesale cost) to begin with.

[DIY]

How did it go?

I think you should have listed it at liquidation value (less than 20% of wholesale cost) to begin with.

I agree. Every asset on the forms should be listed at liquidation value. Here is another reason to form your business as a LLC instead of a sole proprietor. If your asset value is lower than your business debt the Trustee will likely leave your business alone.