Trustees and Assets

[Anon]

I have a business that I am not closing, even though I've filed Chapter 7. The business has a value of about $7000 according to the balance sheet. My attorney said the trustee will most likely let me "buy" back the business and I am prepared for that. Question: can I negotiate with the TT? Does the TT ask for the "book" value or has anyone had the experience where they simply say "give me $1000 and we'll call it a day". I'm prepared for anything but just want to know what other people have experienced.

Yours in BK, Anon

[despritfreya]

Is this business a corp., LLC or sole prop?

If a corp or LLC does the entity owe $$ including a long term commercial lease?

[Anon]

Llc. Business has 1 yr left on lease @ $1500 pm

[Anon]

Sorry, hit the button too soon. Llc has equip leases also for another two hrs too.

[despritfreya]

So, if you were to shut down the LLC, liquidate all of its assets (returning the leased equipment and be liable for the defeciency as well as the balance on the commerical lease) would there be enough $$ from the sale of the assets to pay all LLC debt? If the answer is "no" and there is no competitor out there who would be interested in obtaining the "blue sky" including advertising, phone number and customer base, then, IMHO your membership interest in the LLC is worthless. What does your attny say as it relates to this issue?

[Anon]

My attorney keeps telling me to not worry about it but that I may have to pay a small amount. He's a good guy but he's still an attorney (). I don't think the business is worth anything to anyone except me and it's the only way I can make a living. I've never been so happy to have a worthless business!

[despritfreya]

I wouldn't offer a dime. Let the Trustee investigate and wait to see if he is going to abandon the "asset". If you offer $$ up front he's going to think there is value when there really is none. Play the wait and see game.