Individual debtor filing non-consumer chapter 7; question about "20. Inventories"

[GIn]

If the corporation owns the vehicle, then you are going to most likely need to buy it back from the trustee.

We just had a discussion that the Trustee can not take assets from a LLC if the LLC's debts exceed its assets? Your comment goes against what we have just discussed above.

As to the lien from your father on the vehicle, if it's not perfected, the trustee will void it. Trustees do not like family as lienholders...

The lien was filed with the Department of Motor Vehicles and appears on the title that was sent to the lienholder. Is there something more that needs to be done?

[despritfreya]

If the corporation owns the vehicle, then you are going to most likely need to buy it back from the trustee.We just had a discussion that the Trustee can not take assets from a LLC if the LLC's debts exceed its assets? Your comment goes against what we have just discussed above.

I apologize if you already discussed this. . . I have not gone back to read the post that prompted the above. . .

You are correct. A Trustee must pay entity debt if he/she is going to take control of the entity and, if the entity debt exceeds the value of the assets he is going to walk away. However, a question arises here that may add a layer of complication. . . Who is paying the "bank of dad" for the vehicle? You or the entity? What is the source of the $$ going to dad? If payment to dad is coming out of your pocket and not the pocket of the entity then you might ask yourself, who really owns the vehicle? Just food for thought.

Des.

[GIn]

However, a question arises here that may add a layer of complication. . . Who is paying the "bank of dad" for the vehicle? You or the entity?

Des.

No payments have been made to dad at this point. So far he's been okay with having a lien and hasn't asked for payments. Does this cause a problem?

[despritfreya]

No payments have been made to dad at this point. So far he's been okay with having a lien and hasn't asked for payments. Does this cause a problem?

Don't see any unless you personally put money into the purchase of the vehicle. I assume that there is a written promissory note between the entity and the "bank of dad".

Des.