I just closed a biz in which me and my wife were 49% owners and mom/father in-law 51% (dont mix family and money). The biz closed and in liqudating assests, my father in law received all the money directly from sale of assets, deposited it personally, and is waiting to settle/pay creditors (suntrust was taking money from acct and that is why he did that). I never received anything. He is not going to file bankruptcy, but we have a bunch of biz creditors we have personally guaranteed (as did he) and are going to include into our C7.
My issue/question is I can prove that I have not received any income by bank statements and past tax returns, financial statements, but does anyone have any thoughts, suggestions on how this can impact my C7. I know it will be scrutinized. My in-laws said I will get copies of the receipts paid to creditors, as well as we kept track of how much we sold everything for (talking $12k) or so. But how he pays creditors will be up to him as he is majority holder (he can pay one creditor all if he wants).
My atty gave me the "ohhhhhh" but hasn't elaborated further. Just trying to get thoughts as people here seem very knowledgable. I will be as upfront and honest and show as much paperwork as I can, but how can I prepare. I will also request from inlaws documentation, but not sure if I will get it.
Anyways, thanks in advance if anyone responds.
My issue/question is I can prove that I have not received any income by bank statements and past tax returns, financial statements, but does anyone have any thoughts, suggestions on how this can impact my C7. I know it will be scrutinized. My in-laws said I will get copies of the receipts paid to creditors, as well as we kept track of how much we sold everything for (talking $12k) or so. But how he pays creditors will be up to him as he is majority holder (he can pay one creditor all if he wants).
My atty gave me the "ohhhhhh" but hasn't elaborated further. Just trying to get thoughts as people here seem very knowledgable. I will be as upfront and honest and show as much paperwork as I can, but how can I prepare. I will also request from inlaws documentation, but not sure if I will get it.
Anyways, thanks in advance if anyone responds.