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Selling property owned by LLC
charsetndows-1252
If you can't jawbone the Title officer or title attorney into doing it without a court order, then you have to make the motion to approve the sale. Some judges are pretty blase about giving "comfort orders for title companies" and some are more technical. I can't name names (and don't know which is which). But I believe all of them will either give you an order granting the approval, or denying it on the express ground that it is unnecessary since the condo is not property of the estate, or it is beyond the jurisdiction of the bankruptcy court. Either one should suffice for the title officer, and maybe you should pre-clear those outcomes.
How will the Chapter 11 estate benefit from this sale? Free up Debtor's resources to reorganize?
Jason
Jason Wallach
jwallach@gladstonemichel.com
On Dec 20, 2011, at 9:20 AM, John D. Faucher wrote:
>
> The client owns 100 percent of an LLC. The LLC is the sole titleholder of a condo. Client is in chapter 11.
> Client wants to sell the condo. Title company says she can't without an order from the bankruptcy court allowing the sale. We tell the title company to read 541(a) and (b)(1), this condo is not property of the estate; the title company says no, it's a sole-shareholder LLC, you have to get an order from the court allowing this sale.
> I thought you guys on the listserve had dealt with this issue, but I couldn't find it.
> Can we even get an order from the court allowing the sale of property not part of the estate? I don't think t he court has jurisdiction.
> Any other tricks to convince the title company to bless the sale?
>
>
>
> John D. Faucher
> Hurlbett & Faucher, LLP
> 5743 Corsa Ave., Suite 208
> Westlake Village, CA 91362
> (818) 889-8080
> Fax: (805) 367-4154
> http://www.hurlbettfaucher.com/
>
> 3324 State Street, Suite O
> Santa Barbara, CA 93105
> (805) 963-9111
>
> This electroni c mail message and any attached files are confidential, contain information intended for the exclusive use of the individual or entity to whom it is addressed, and may be legally privileged. If you are not the intended recipient, please immediately reply to John Faucher (at 818/889-8080 or john@hf-bklaw.com) indicating that you received this message and then delete the message without delay. Thank you for your cooperation.
>
> Disclosure Under U.S. IRS Circular 230: The recipient may not use any tax advice contained in this communication, including any attachments, for the purpose of avoiding federal tax related penalties or promoting, marketing or recommending to another party any particular transaction or matter.
>
>
charsetndows-1252
If you can't jawbone the Title officer or title attorney into doing it without a court order, then you have to make the motion to approve the sale. Some judges are pretty blase about giving "comfort orders for title companies" and some are more technical. I can't name names (and don't know which is which). But I believe all of them will either give you an order granting the approval, or denying it on the express ground that it is unnecessary since the condo is not property of the estate, or it is beyond the jurisdiction of the bankruptcy court. Either one should suffice for the title officer, and maybe you should pre-clear those outcomes.How will the Chapter 11 estate benefit from this sale? Free up Debtor's resources to reorganize?Jason
Jason Wallach
The post was migrated from Yahoo.
charset="US-ASCII"
The client owns 100 percent of an LLC. The LLC is the sole titleholder of a
condo. Client is in chapter 11.
Client wants to sell the condo. Title company says she can't without an
order from the bankruptcy court allowing the sale. We tell the title
company to read 541(a) and (b)(1), this condo is not property of the estate;
the title company says no, it's a sole-shareholder LLC, you have to get an
order from the court allowing this sale.
I thought you guys on the listserve had dealt with this issue, but I
couldn't find it.
Can we even get an order from the court allowing the sale of property not
part of the estate? I don't think the court has jurisdiction.
Any other tricks to convince the title company to bless the sale?
John D. Faucher
Hurlbett & Faucher, LLP
5743 Corsa Ave., Suite 208
Westlake Village, CA 91362
(818) 889-8080
Fax: (805) 367-4154
http://www.hurlbettfaucher.com/
3324 State Street, Suite O
Santa Barbara, CA 93105
(805) 963-9111
This electronic mail message and any attached files are confidential,
contain information intended for the exclusive use of the individual or
entity to whom it is addressed, and may be legally privileged. If you are
not the intended recipient, please immediately reply to John Faucher (at
818/889-8080 or john@hf-bklaw.com )
indicating that you received this message and then delete the message
without delay. Thank you for your cooperation.
Disclosure Under U.S. IRS Circular 230: The recipient may not use any tax
advice contained in this communication, including any attachments, for the
purpose of avoiding federal tax related penalties or promoting, marketing or
recommending to another party any particular transaction or matter.
charset="US-ASCII"
The client owns 100 percent of an LLC. The LLC is the sole titleholder of a condo. Client is in chapter 11. Client wants to sell the condo. Title company says she can't without an order from the bankruptcy court allowing the sale. We tell the title company to read 541(a) and (b)(1), this condo is not property of the estate; the title company says no, it's a sole-shareholder LLC, you have to get an order from the court allowing this sale. I thought you guys on the listserve had dealt with this issue, but I couldn't find it. Can we even get an order from the court allowing the sale of property not part of the estate? I don't think the court has jurisdiction. Any other tricks to convince the title company to bless the sale?
The post was migrated from Yahoo.