Asset Question

[wrinkleigh]

We plan to file middle of next month. Waiting to close a business, and get the final books closed by an accountant.

1st issue
When I spoke with my lawyer, he told us to value the business stock at about $6,000.00. We come up with retail value at $15000.00, wholesale value at $12,000.00. It is an herb shop, and the stock is all herbal products. So he said that we would put $6000.00 to be on the safe side. We are actually closing the business over Thanksgiving, and we are boxing everything up and putting it in storage, we will turn it over if asked.

Question is -- will they actually take it??? How would they get rid of it when we couldnt?

2nd issue

The only other asset we really have (that is not covered by an exemption), are two 4-wheelers. I come up with an NADA book value as 3500.00 combined in fair condition. One has been wrecked, the other is in good condition looks wise -- but does not run, hasnt in some time.

How should I list these? What value should I give them? I dont even think they are really worth listing, but I dont want to hide anything.


Any opinions/insight would be helpful. We dont actually go back to the lawyer and turn in our paperwork till Dec.

[SinkingFast]

You are right. You definitely wanna declare the 4 wheelers. It's best to be in the position of differing with the Trustee about the values than to not declare them and have the Trustee discover you own them later. Not disclosing them could wind you up in a whole nother heap of trouble. But you don't want to over value them either.

If the 4 wheelers are old, that's a negative. One doesn't run and one is damaged. Both factors are negatives. Either one may not even be "Fair" condition.

Have you investigated how much it might cost to fix either one??

If you advertised them "For Sale" today, AS IS, how much could you reasonably expect to get for them.

Maybe call a 4 wheeler dealer. Tell them what you have and what's wrong with them. That you're looking to sell and see what they tell you they're worth. You might have to call several dealers to get one to answer your questions. But, you might also learn that you could only sell them for a few hundred dollars each.

As far as the store inventory,......... Trustees work with auctioneers on a regular basis. Your store inventory will probably go in an auction at some point if the Trustee decides to sieze it. If you don't care about loosing it, then don't worry about it. Follow your attny's advice. Put a value on it and be done with it.

[CindyLou]

Basically the 4 wheelers are only for parts if they will cost more to fix than they are worth. Are they titled in your state? If so, list them for sure. If they are not titled and they are not running, then the trustee would not want them anyway. So I would go either way on the latter.