chapter 7 and inventory

[KMAN]

Hi Folks,

First time posting here. My situation: I'm an author/independent publisher (sole-proprietor) who has written two books that are successful sellers within their niche, usually grossing between 3K-4K a month (my proceeds from distributors who then resell to retailers). My business/personal debt (60K-all credit cards) is becoming unmanageable, which has steered me to consider filing for bankruptcy.

I have on hand about 70K (wholesale value) worth of inventory (books). Is there any way to file so the debt is removed but I keep the inventory so I still have an income through sales? Or will this be appropriated and sold off? Should I limp along and get the inventory down (1 yr. out) then file? I have no other assets to speak of, although if attachment was measurable my old Ford would be golden.

Thanks for your help.

[keepmine]

Those books will be considered property of the bk estate.
I'd whittle down the inventory and spend down the proceeds to support yourself.
If, bk is your endgame, stop paying all credit card debt now.

I don't know the totality of your situation {income and other debt} but, is it feasable to have a firsesale for your inventory and pay the cc's off and avoid bk?

[AngelinaCatHub]

Even if you have a fire sale or whittle down the inventory, I assume you will keep writing to keep a living income. So it seems to me you will always have stock to move.

You must be pretty good at your job as 2 to 4K a month is not bad. You average about 3K a month so 36K a year. It is possible that the Trustee would not know how to handle selling your stock of books and abandon them. That would be the best of both worlds, but it is a gamble. 'Hub

[StartingOver08]

Keepmine is right - the inventory is considered an asset of yours and it is the Trustee's job to find assets to liquidate. Hub is the optimist here! It is unlikely that the Trustee would ignore your assets (inventory).

Your best bet is to liquidate the inventory yourself, prior to filing BK. http://www.moranlaw.net/struggling.htm

[HHM]

If you file chapter 7, the books would be toast.

Of course, that assumes the trustee has the same avenues to sell the books. You might come out ok because the trustee may not have the practical means to off load them easily.

But legally, there is NO way to protect inventory. It is a non-exempt asset.

[KMAN]

Getting rid of as much inventory as possible before filing makes sense...even if in reality the Trustee can't do anything with the books.

From the other forums it seems like 12 months is average from when credit card payments are stopped to some sort of court action? And I glean the greater span of time between cc purchase and BK, the better?

Any issues with the Trustee going for the copyrights to the books? Or is this outside of their power?

I do make a fair living at it..but it just ain't enough!