Trustee wouldn't close my case at 341 hearing.

[egold1234]

To make a long story short. I have about 90k in unsecured debt and 80k in student loan debt. The 90k in debt was from a failed buisness back in 2010 and I have been making less than 15k a year since and fell behind on all my payments.

In 2012 my girlfriend and her dad decided to open up a bar. Because my previous buisness was a bar and my girlfriend at the time was not eligible for a liquor license I applied for the license in my name (techincally making me owner of the buisness, even though my name is NOT on the bank accounts and I have no access to the funds or buisness making decesions). But because of the licensee the trustee claims he will have to take and sell the buisness. (which will end up with my girlfriends father suing me, the landlord suing me, and me having to declare bankruptcy AGAIN...oh and I would cost her faimly their entire investment)

Now, it is my understanding in a chapter 7 bankruptcy the trustee would only liquidate the buisness asets (which are EXTREMLY LOW as all the equipment is owned by the landlord or leased). So, if that were to happen the buisness would continue as it has no assets to sell and I would be able to continue with my chapter 7.

Am I correct in my understanding?

[bstone]

Man, that sounds like a pretty crappy position to be in.  I would assume you are right in that the only things the trustee can liquidate are the assets, however where I see this getting tricky is the possibility of the assets of the business being co-mingled with your personal assets and now things which may have been exempt previously no longer are due to the total value.

I presume you have an attorney?  Have you spoken to them about this?  If you don't have one you might want to retain one immediately as this is going to get really complex very quick.

Good luck!

[StartingOver10]

I don't think that it is correct that only the business assets are sold. The liquor license is an asset. The trustee can sell the business itself as an asset - but please discuss this with your attorney to get accurate info for your specific situation.

You may have other options, like buying out the asset or filing a Ch 13.

Remember, the trustee represents the creditors. The trustee is paid a commission for all the assets s/he can find in your Bk filing. A no asset Ch 7 is the lowest form of payment the trustee gets (something like $65 per case) so it literally pays the trustee to find assets anywhere they can in each and every case. They know where to look too.

[egold1234]

My attorney claims that the liquor license is  NOT an asset due to the fact in my state liquor licenses are NOT transferable. They have no value. And the buisness can't be sold as that would require the landlord to sign a new lease which they wont do (the landlord is the former owner of the buisness, we're just leasing it, if we leave they will probably run it again). 

My attorney is actually stumped at this one. Converting to a chapter 13 wouldnt be an option for me as I couldnt afford the payments.

So here I am.  It took me months to save up the money to file for the bankruptcy and try to get my life back on track once again and I feel like ill never be able to restore my credit. I've chaged my phone number several times and even moved because of the fear of creditors harrassing me. When my buisness was doing well I had a solid fico of 760. I PIF every month, great credit lines, and my life just got flipped upside down when I went under.

[Billybob_TX]

You can include any potential lawsuits right now, since all that potential liability accrued prior to filing. You may have to say sayonara to the GF. There are others out there.

Or, the trustee might find that you really don't have an equity stake in anything, thus nothing he can seize and sell.

[egold1234]

I should hear from my attorney Monday. I had the GF send all the finacial documents to the attorney so hopefully he can make his case. I will deffinetly let everyone knows how it turns out. Wish me luck!

[Anonymous]

Wishing you luck! This is a challenge no doubt.

[ezdriver]

The trustee will determine if there is any value to the business [which includes the license]. You can challenge the trustee's determination of value but that is a tough one to win. Applying for a liquor license while in a ch7 was a mistake. You may want to consider surrending the license to the state authority. You may need a more experienced bankruptcy attorney. All the best.