Questioning Attorney

[azballer]

I wanted to get some opinions on some of the things I am hearing from my attorney (please)...

My wife and I have a $60k boat that we owe around $59k on. I assumed that we would have to give it up when we file in October, but my attorney just told me there is a chance we could keep it and we should keep making the $700/month payments if we wanted to. I don't think there is any doubt we will have to give it up...

I asked on another thread about making a loan to our LLC to cover some moving expenses for the company and the consensus was that it was a very bad idea. We have some cash we need to burn through before we file and I asked our attorney if the loan was a possibility and she said that as long as it was not over $2k, it would not be a problem...we would just have to disclose it. Couldn't the transfer of the money to the LLC be seen as hiding the cash?

I am starting to wonder if we made the right call on this attorney or maybe I am just over-analyzing all aspects of this bankruptcy and should defer to her expertise. Any thoughts?

[HHM]

There are 2 issues with boat, the boat as an expense, and the boat as an asset.

1. As an asset, if you owe what it is worth, then the BK trustee will not be interested, because he can't get any money to pay unsecured creditors.
2. As an expense, the expenses will definitely not be allowed (its a luxury). If you would have disposable income without the boat payment, then the US trustee would possibly kick you into chapter 13 at which point you wouldn't have the budget to make the payment.

As for the loan to the LLC. First issue, many trustees will simply shut down an LLC. What is the plan with the LLC relative to the BK?

[azballer]

Our plan for the LLC is to keep it in operation. Our attorney has never given us any reason to think otherwise. I understand the issue with it being an asset and our inventory has some value, but if there is no profit being made and we plan to purchase the inventory back from the trustee (if he goes with that option), why would he want to shut it down. The company is growing and will be a great source of income down the road...why would he want to kill that option if BK is a fresh start?