'illiquid assets', equipment leasing, oil partnerships

[adventurer]

Hi,

My ex and I own some very illiquid assets like partnership 'shares' in equipment leasing, oil & gas drilling programs, tax credit housing, reits.

These were all listed in the final divorce decree (and on my 1040 tax return), therefore I assume they are part of the public record; with enough digging will be found....

a) Is this a correct assumption?

a1) if I do not file BK....[/B][/I]are the cc companies likely to find these assets and put a lien on or attach them, once I max out the cc's and cannot pay the minimums ?


b) if I do file BK... besides actually auctioning these assets, how are these type of assets valued ? (as they produce passive income (8% -14%/year), over a period of many years and they are rarely sold)

b1) it is not an option to have my CFP value them as my ex and he were an item and I had to fire the CFP.


Thank you for your excellent and amazingly prompt help!

ps... and for all English teachers...I know it is not ok to have double (())'s!

[SinkingFast]

Welcome to the Forum, Adventurer!

Most people here are more familiar with basic, straightforward personal Ch 7 and Ch 13 BK.

There was a poster here recently who's case was kinda, sorta like yours. At least the situation was similar.

http://www.bankruptcyforum.com/showt...ight=royalties

While the Trustee may not sieze and sell your assets, the Trustee could lay claim to the revenues derived from those assets for whatever period of time after you file BK.

Be sure you Consult with attnys who are well versed in Business BK or BK involving "liquid" assets such as yours.

[GoingDown]

Definitely go seek the advice of a few BK attorneys because it appears that you have considerable assets to try to protect from creditors.

And yes, if the bankruptcy court can find the assets, then so can the creditors. So, no they are not safe from either of them.

Have you considered selling those assets now, and then maybe living off of the cash you get from them for a few years before filing BK? It would be a shame for all that money to go up in smoke ((poof!)) to creditors and/or to the bankruptcy court. The money will be gone either way, but at least this way you will get some use out of it.

[Spartan]

Partnership assets are shield from seizure. The most creditor can do is to get a lien on distribution, if there is any distribution. If your limited partnership shares are publicly traded, I believe they will seize those.

What you should do, is to consult an asset protection specialist. At this point, there is no judgement awarded against you, you may be able to squeeze by fraudulent conveyance.

I believe there are legal strategies you can use, that would put your assets behind a shield. You can structure it so that distribution is by discretion only. Then even if the creditors get a charging order, they will just have to wait till any distribution is ever made. They can't force a distribution. Meanwhile, they are stuck with the tax bill.