Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do: (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.

Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Biz Sale to Family at FMV

  • Filter
  • Time
  • Show
Clear All
new posts

  • Biz Sale to Family at FMV

    No advice on this in the property transfer forum, so I was hoping to maybe get some thoughts by posting in the small business forum. Thanks in advance.

    Ok guys, I am diving in. Been reading a bunch, and learning a lot just in case I need to go down this path. My business is seasonal, so I can't say yet if I can pull through this or not, but have been preparing just in case.

    In February I sold an LLC that owns a retail business. 80% services / 20% product sales. Personal care business. My family member had taken a mortgage against their house to assist with the initial financing. The location means this business has potential. Every year for several years now there is a line on each of our tax return showing my old LLC taking an interest deduction for mortgage interest on her home, and her taking it as interest income. So there is a trail of their being a loan in place.

    She formed an LLC, and took over the business. I am current on all of my personal bills, but unsure of the future based on a variety of issues that have arisen within my industry and other business dealings.

    The purchase agreement between her company, and my old one states that for forgiveness of debts incurred against her house, and other debts (retirement funds), my LLC has sold her the assets in exchange for a release from those debts. We valued the business very fairly in my opinion, considering the economy, and type of business it is, as well as based off of its annual gross sales. She paid a significant bulk sales tax amount based off of that number.

    I don't see an issue with waiting until after February of this coming year (if at all, depending on business) to file since I am currently up to date with all other bills, just to be on the safe side as far as preferential payments go, nd don't want this to be perceived as a fraudulent transfer as it wasn't, it was merely a way for me to focus on my other businesses, and for her to have something of value in exchange for the debt owed.

    I met with a very reputable attorney in my area who made the recomendation to wait at least until February if I have to, and feels comfortable that it is a reasonable transaction.

    I wanted to get some of your thoughts?

    Thank you

  • #2
    IMHO, this matter is much too complicated for this type of forum. Having said that, it sounds like your transaction is above board and, I agree that you should wait the one year preference period. However, the transfer of your interest in the business (if I read it correctly) was less than 2 years ago and will have to be disclosed in question 10 of the SOFA. In addition, question 18 requires disclosure of all business ventures you have had in the past 6 years. A Chapter 7 Trustee IS going to investigate the transaction to determine if there is anything that can be recovered.

    One of the reasons you use a "reputable attorney" is that if a bump in the road materializes, the attorney can help smooth it out. However (I do love that word), your attorney should not represent your family member in defending against the Trustee due to a conflict of interest. If the Trustee attempts to set aside the transaction and your family member is going to put up a fight, she will most likely have to find her own attorney.

    If you are really concerned over the issue don't file a 7. Consider an 11 or a 13 where the issue is not going to be delved into in any great depth.


    Unconfigured Ad Widget