Please,...in dire need of help! (long, sorry)

[Stevessvt]

The trustee hasnt given me a final number on what his thoughts are on its worth. I have a ton of questions I want to ask his lawyer, but since he rejected my offer over the phone, he hasnt responded to my calls or emails. So Im kind of stuck now.

[bkadvisor]

I don't mean to offend here but after four pages of posts I don't seem to think the OP realizes exactly what he did. He formed a business entity post bk filing and conveyed assets from his name to the LLC. This is one dumb fraudulent conveyance mess now.

His first atty has many problems with this client now not the least being client-atty privilege. He can not divulge to the bk trustee any privileged communication between he and the OP. Therefore he is stuck with this mess he told his client not to do.....because it was too late. But the client does it anyway.

The timing of the transfer is important in determining whether the transfer will stand or not. Only those transfers completed or perfected within a year of the filing of the petition for bankruptcy may be reversed. I have seen attempts at conveyances pre-bk filing but NEVER during the pendency of the bk filing.

Once a transfer has been deemed fraudulent, the trustee may recover the property, or the value of the property, and make it part of the bankruptcy estate. They may do so from either the immediate recipient or from anyone else to whom the property was subsequently transferred. One exception to this general rule, however, is the case of the "bona fide purchaser." The bona fide purchaser is one who acted in good faith to purchase the property without notice of the outstanding rights of others to the property. The bona fide purchaser may retain the property. Finally, if the law places no other restrictions on the transfer, and the property was purchased for some value in good faith, in other words, with no knowledge of the fraudulent intent, the person receiving the transferred property may be allowed to retain the property or regain the value they paid for it in the settling of the estate. The trustee proffered an opportunity to sell the business back....but "bona fide" which translates to "good faith" was obviously not $250 a mnth on a $25k purchase proffer.

A Chapter 7 filing can NOT be voluntarily dismissed. IMHO, a 'totality of circumstances' or 'presumption of abuse' dismissal in this case would be a blessing in disguise.

The bk trustee represents the creditors. He wants no more dealings with the OP except to continue grabbing every dime the OP has up to the value of his newly formed LLC business. The incorporation was no biggie......it was the conveyance of your business assets that caused the fraudulent transfer. In the bk trustee's mind this move was an intent to delay, hinder and/or defraud your creditors. maybe he will give you points for just sheer stupidity.

Maybe the bk trustee will take some pity on you.......but you had the advice of counsel when you did it. So ignorance can not be an excuse. Your former atty doesn't want to jeopardize his license to practice law for the dumb move you made without his knowledge. IMHO, he went back and forth trying to figure out how to resolve what you did without putting his license to practice law in jeopardy....and he could not found an out.

IF by the Grace of God you encounter another attorney to represent you....beg and/or borrow $$s for his/her help. Trust me, this is one for the books.

I apologize beforehand if this post seems harsh....but you must take the responsibility for what you did and quit playing the blame game. This mess was a direct cause and effect of your doings. I'm sorry you have diabetes....I also have a degenerative disability so I empathize with you. Yet there are people far worse off than me. The unemployment rate in this country is skyrocketing every month. We are all suffering in this economy.

I hope this nightmare ends soon for you. In that spirit I wish you GL!

[StartingOver08]

Update: The closing date has passed for the creditors to make a claim on me. $41,000 in creditors has made a claim on me. This includes a credit card I had with the ex wife, but she was court ordered to pay. But since she went bankrupt also, the buck gets passed to me.
So the trustee wants me to make a propsal on repaying this amount. My business I believe is worth about $30000. But, do I start negotiations now, or do I wait for a final judgement?

I re-read your post. Did the Trustee offer you the option of converting to a Ch 13?

With the $41k in debt and the $30k valuation of your half of the business, can you possibly work out a payment in a Ch 13 to resolve this over 3 yrs? Just thinking out loud. This might solve your problems. IDK.