Family Corporation

[gfounds]

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 (me)?

[SinkingFast]

This one is a tough question. I don't know the answer.

I can tell you, the day you file, your entire estate belongs to the Trustee. To do with as he or she sees fit. Any thing you cannot exempt is fair game. The Trustee can choose to cash out, sell, or abandon. However they see fit.

I would think it would not be out of the realm of possibility to get a real A-hole of a Trustee who could want the company to liquidate your portion of the assets to be turned over to the Court. Dunno for sure if a Trustee can do that, but if they can, and the value is significant, they sure will try.

Maybe someone with lots of business BK knowledge will chime in.