Personal & corporate bk's
Posted: Tue May 14, 2013 8:14 am
Thanks Dennis, but that's why I'm waiting to see the tax rtn and a current P&L. The lawsuit is about the lease/buy agreement for $225k
+ $70k to pay the seller's L/C and the PC's own L/C of $50k, so it might not have much in value.
Law Office of Vicki L. Temkin
mailing address:
15021 Ventura Blvd., Ste. 753
Sherman Oaks, Ca 91403
Ph:(818) 501-4658 /Fx:(818) 501-0903
www.vtemkinlaw.com
>________________________________
>To: "cdcbaa@yahoogroups.com"
>Sent: Monday, May 13, 2013 9:57 PM
>Subject: Re: [cdcbaa] Personal & corporate bk's
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>Vicki:
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>Question is what could the trustee get for the auto parts store inventory, or the whole store?
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>You have not addressed the liquidation value of the store. Retail ops sell for 3 to 5 times yearly income. If w makes 3k/mo and h makes 1.5k/ month, that's 4.5k per month, or 52k/year. Could sell for $150K. What are the liabilities?
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>If liabilities of store are more than 150K, no sale in prospect. If something small, could lose store in a 7?
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>Sent from my iPad
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>On May 13, 2013, at 2:17 PM, vicki temkin wrote:
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>>Dear listmates,
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>>I'm not really sure of the best way to do this and could use some guidance.
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>>Married debtors, everything in W's name. Both H & W individually and W's
corporation (auto parts store) are being sued for breach of contract. W is sole shareholder and H works there with her.H claims the auto parts store pays the salaries and the expenses and that's about all.$1,500/mo. H claims it just about breaks even after expenses- corp owes a maxed out $50,000 L/C that W personally guaranteed. I am getting the tax
rtn for the corp. and a current P & L. I already have their
2011 and 2010 personal returns which showed $32,000 profit. H says 2012 and this year will be less.
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>>W sold a clothing store in late 2012
but the buyer can't pay the $40,000 in cash, so she took some money and
the balance in clothes. She's leased a small
space to sell the clothes, but that's not opened yet.
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>>Filing a personal ch 7 is not an issue. The pass the means test, most debt
being non-consumer. They own a house that's underwater, but has a
rental which pays $1,200/mo. They have some equity in their 2 cars but
not much. They want to file rather than defend the lawsuit in state ct. and I have told them very clearly it's possible the plaintiff will go after him in the bankruptcy or try for a RFS and continue in
state ct.
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>>He wants to keep the auto parts business going. I think the trustee would probably take the clothes from the wife but
would trustee likely close the auto parts store if it filed it's own 7?hen does a corporate bk close, not getting a discharge? Depos are scheduled in about 2 wks so no judgment to worry about and
they want to do this before then. Is filing a 7 for the corp. a goodidea and would it accomplish what they want - get rid of
the law suit and keep the business open?
>>Appreciate any help with this I can get. Thanks, Vicki
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>>Law Office of Vicki L. Temkin
>>mailing address:
>>
>>15021 Ventura Blvd., Ste. 753
>>Sherman Oaks, Ca 91403
>>Ph:(818) 501-4658 /Fx:(818) 501-0903
>>www.vtemkinlaw.com
>>
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