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Exempting Residual Income
Have you considered a Ch13? If the residuals are debtor's only source of
income, why risk it in a Ch7? You could get an aggressive trustee who
sells the rights to it and debtor is left with nothing except the wildcard
(which in the long run isn't much). I believe the ex-spouse's interest is
exempt from the estate.
Shannon A. Doyle
Attorney at Law
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West Covina, CA 91791-1600
Tel: (626) 646-2555
Fax: (626) 332-8644
www.borowitzclark.com
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*From:* cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] *On Behalf
Of *Michael Avanesian
*Sent:* Monday, April 07, 2014 9:37 AM
*To:* cdcbaa@yahoogroups.com
*Subject:* Re: [cdcbaa] Exempting Residual Income
Is there a reason why the Trustee can't sell the rights to collect the
residuals?
I think there may be a way to salvage some of it if (the Debtor would know)
there is a way to increase the value of the residuals by the Debtor's
postpetition behavior. Any increase in residual value from the postpetition
actions should belong to the Debtor right?
nonaction may result in a decline in value from the residuals. Like if he
stops directing other films? Or better, if he stops attending special
conventions where his films are watched/sold. If the Debtor is broke AND
benefits no $, why would he show up? Come on trustee, throw him something
so you can protect your end. (Then again, the Trustee may take his chances
depending on the facts.)
Those are negotiating points which may or may not work depending on the
Trustee and the underlying facts.
I wouldn't risk a low ball appraisal because 33k / year for next 3 years is
worth at least 75k!
Sincerely,
Michael Avanesian
Law Offices of David A. Tilem
www.tilemlaw.com
818-507-6000
On Mon, Apr 7, 2014 at 9:18 AM, Catherine Christiansen wrote:
the Trustee will look to the value of selling the ability to collect the
residuals in the future. You need to have someone estimate the value and
that is the amount you exempt - if possible. Look for businesses that
purchase judgments, they will be able to help you find the sales value.
Law Office of Catherine Christiansen
17011 Beach Blvd. Ste 900, Huntington Beach, CA 92647
Tel: (714) 375-6651 Fax: (562) 490-8572
attorneychristiansen@gmail.com
On Monday, April 7, 2014 7:36 AM, Stella Havkin
wrote:
Huge chance a trustee will keep case open and collect residuals.
Sent from my Stella Havkin's IPhone
On Apr 7, 2014, at 2:15 AM, wrote:
Two quick questions regarding potential Chapter 7 client:
1. Director potential debtor makes around $32k per year in residuals
from completed films which have "staying power" and residuals are expected
to continue at around $20-$30k per year for several more years even if he
quit working today. I can wildcard exempt most of the expected value of
the post BK first year of residuals. What are the chances an L.A. Trustee
would hang around and keep the case open to collect residuals after the
first year?
2. Ex-wife of potential debtor has a divorce support order against
debtor's residuals to collect around 25% of net pay, and debtor is pre
petition current on support. If the support order is recorded pre petition
could it put the Trustee on constructive notice of ex-wife's interest and
be senior to the Trustee's interest in the residuals?
Thanks in advance for any advice,
Michael Chekian, Esq.
Chekian Law Office
11400 W. Olympic Blvd. #200
Los Angeles, CA 90064
(310) 390-5529
Fax (310) 451-0739
e-mail: mike@cheklaw.com
The post was migrated from Yahoo.
A chapter 7 trustee will set a claims bar date to determine what unsecured debt has to be paid. The Trustee will then collect the residuals until a reasonable dividend may be paid on allowed claims; any wildcard exemption asserted by the Debtor will be paid first. All Trustees routinely handle these cases pretty much the same-eventually the Debtor finds some $$ and purchases the residual income stream from the estate.
Wesley H. Avery
Wesley H. Avery, Esq.
Bankruptcy Trustee
wavery@rpmlaw.com
28005 Smyth Drive, Ste. 117
Valencia, CA 91355-4023
(661) 295-4674 (office)
(661) 430-5467 (fax)
(661) 618-7376 (cell)
[cid:part1.03050307.05030101@bklaw.com]
Certified Specialist
Bankruptcy Law
State Bar of California
Board Certified
Business Bankruptcy Law
American Board of Certification
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The post was migrated from Yahoo.
Is there a reason why the Trustee can't sell the rights to collect the
residuals?
I think there may be a way to salvage some of it if (the Debtor would know)
there is a way to increase the value of the residuals by the Debtor's
postpetition behavior. Any increase in residual value from the postpetition
actions should belong to the Debtor right?
nonaction may result in a decline in value from the residuals. Like if he
stops directing other films? Or better, if he stops attending special
conventions where his films are watched/sold. If the Debtor is broke AND
benefits no $, why would he show up? Come on trustee, throw him something
so you can protect your end. (Then again, the Trustee may take his chances
depending on the facts.)
Those are negotiating points which may or may not work depending on the
Trustee and the underlying facts.
I wouldn't risk a low ball appraisal because 33k / year for next 3 years is
worth at least 75k!
Sincerely,
Michael Avanesian
Law Offices of David A. Tilem
www.tilemlaw.com
818-507-6000
On Mon, Apr 7, 2014 at 9:18 AM, Catherine Christiansen wrote:
>
>
> the Trustee will look to the value of selling the ability to collect the
> residuals in the future. You need to have someone estimate the value and
> that is the amount you exempt - if possible. Look for businesses that
> purchase judgments, they will be able to help you find the sales value.
>
>
>
> Law Office of Catherine Christiansen
> 17011 Beach Blvd. Ste 900, Huntington Beach, CA 92647
> Tel: (714) 375-6651 Fax: (562) 490-8572
> attorneychristiansen@gmail.com
>
>
>
> On Monday, April 7, 2014 7:36 AM, Stella Havkin
> wrote:
>
> Huge chance a trustee will keep case open and collect residuals.
>
> Sent from my Stella Havkin's IPhone
>
> On Apr 7, 2014, at 2:15 AM, wrote:
>
>
> Two quick questions regarding potential Chapter 7 client:
>
> 1. Director potential debtor makes around $32k per year in
> residuals from completed films which have "staying power" and residuals are
> expected to continue at around $20-$30k per year for several more years
> even if he quit working today. I can wildcard exempt most of the expected
> value of the post BK first year of residuals. What are the chances an L.A.
> Trustee would hang around and keep the case open to collect residuals after
> the first year?
> 2. Ex-wife of potential debtor has a divorce support order against
> debtor's residuals to collect around 25% of net pay, and debtor is pre
> petition current on support. If the support order is recorded pre petition
> could it put the Trustee on constructive notice of ex-wife's interest and
> be senior to the Trustee's interest in the residuals?
>
> Thanks in advance for any advice,
> Michael Chekian, Esq.
> Chekian Law Office
> 11400 W. Olympic Blvd. #200
> Los Angeles, CA 90064
> (310) 390-5529
> Fax (310) 451-0739
> e-mail: mike@cheklaw.com
>
>
>
>
>
>
Is there a reason why the Trustee can't sell the rights to collect the residuals? I think there may be a way to salvage some of it if (the Debtor would know) there is a way to increase the value of the residuals by the Debtor's postpetition behavior. Any increase in residual value from the postpetition actions should belong to the Debtor right?
nonaction may result in a decline in value from the residuals. Like if he stops directing other films? Or better, if he stops attending special conventions where his films are watched/sold. If the Debtor is broke AND benefits no $, why would he show up? Come on trustee, throw him something so you can protect your end. (Then again, the Trustee may take his chances depending on the facts.)
Those are negotiating points which may or may not work depending on the Trustee and the underlying facts. I wouldn't risk a low ball appraisal because 33k / year for next 3 years is worth at least 75k!
Sincerely, Michael AvanesianLaw Offices of David A. Tilemwww.tilemlaw.com
818-507-6000
On Mon, Apr 7, 2014 at 9:18 AM, Catherine Christiansen <christiansenlaw@yahoo.com> wrote:
the Trustee will look to the value of selling the ability to collect the residuals in the future. You need to have someone estimate the value and that is the amount you exempt - if possible. Look for businesses that purchase judgments, they will be able to help you find the sales value.
The post was migrated from Yahoo.
the Trustee will look to the value of selling the ability to collect the residuals in the future. You need to have someone estimate the value and that is the amount you exempt - if possible. Look for businesses that purchase judgments, they will be able to help you find the sales value.
Law Office of Catherine Christiansen
17011 Beach Blvd. Ste 900, Huntington Beach, CA 92647
Tel: (714) 375-6651 Fax: (562) 490-8572
attorneychristiansen@gmail.com
On Monday, April 7, 2014 7:36 AM, Stella Havkin wrote:
Huge chance a trustee will keep case open and collect residuals.
Sent from my Stella Havkin's IPhone
On Apr 7, 2014, at 2:15 AM, wrote:
>Two quick questions regarding potential Chapter 7 client:
>
> 1. Director potential debtor makes around $32k per year in residuals from completed films which have "staying power" and residuals are expected to continue at around $20-$30k per year for several more years even if he quit working today. I can wildcard exempt most of the expected value of the post BK first year of residuals.e open to collect residuals after the first year?
> 2. Ex-wife of potential debtor has a divorce support order against debtor's residuals to collect around 25% of net pay, and debtor is pre petition current on support. If the support order is recorded pre petition could it put the Trustee on constructive notice of ex-wife's interest and be senior to the Trustee's interest in the residuals?
>
>Thanks in advance for any advice,
>Michael Chekian, Esq.
>
>Chekian Law Office
>11400 W. Olympic Blvd. #200
>Los Angeles, CA 90064
>(310) 390-5529
>Fax (310) 451-0739
>e-mail: mike@cheklaw.com
>
The post was migrated from Yahoo.
Huge chance a trustee will keep case open and collect residuals.
Sent from my Stella Havkin's IPhone
> On Apr 7, 2014, at 2:15 AM, wrote:
>
> Two quick questions regarding potential Chapter 7 client:
>
> 1. Director potential debtor makes around $32k per year in residuals from completed films which have "staying power" and residuals are expected to continue at around $20-$30k per year for several more years even if he quit working today. I can wildcard exempt most of the expected value of the post BK first year of residuals. What are the chances an L.A. Trustee would hang around and keep the case open to collect residuals after the first year?
> 2. Ex-wife of potential debtor has a divorce support order against debtor's residuals to collect around 25% of net pay, and debtor is pre petition current on support. If the support order is recorded pre petition could it put the Trustee on constructive notice of ex-wife's interest and be senior to the Trustee's interest in the residuals?
>
> Thanks in advance for any advice,
>
> Michael Chekian, Esq.
>
> Chekian Law Office
>
> 11400 W. Olympic Blvd. #200
>
> Los Angeles, CA 90064
>
> (310) 390-5529
>
> Fax (310) 451-0739
>
> e-mail: mike@cheklaw.com
>
>
>
>
The post was migrated from Yahoo.