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    #1

    A business

    Hello,
    I will be filing Ch13 soon, Possibly Ch7. Hope someone can answer a question for me.

    I have an LLC that I don't use. It has basically been dormant for the last year or so. No assets in the bussiness, No debts. I do however have a CC that I took out for the company using the companies Tax ID number. I have a bad habbit of using this card occasionally for personal uses But I also zero out within the month. Of course this card doesn't show up in my credit reports since technically Im just an auth user. How do I handle this when it comes time to file?
    Chapter 7
    Filed, 12/21/2010
    Discharged, 03/30/2011
    Tags: None
    #2
    If you owe any money on it, you list it. If not, you do nothing.
    All information contained in this post is for informational and amusement purposes only.
    Bankruptcy is a process, not an event.......

    Comment

      #3
      Is it really as simple as that?
      Chapter 7
      Filed, 12/21/2010
      Discharged, 03/30/2011

      Comment

        #4
        The credit card, yes.

        The LLC you would disclose as a possible asset. If it is doing no business, has no funds, makes no income, has no money, then the trustee will not want it.

        It is pretty simple.
        All information contained in this post is for informational and amusement purposes only.
        Bankruptcy is a process, not an event.......

        Comment

          #5
          Originally posted by frogger View Post
          The credit card, yes.

          The LLC you would disclose as a possible asset. If it is doing no business, has no funds, makes no income, has no money, then the trustee will not want it.

          It is pretty simple.
          So since that is the case, Will he/she/trustee force me to close it still? I was hoping to use it again sometime in the future to actually make some money.
          Chapter 7
          Filed, 12/21/2010
          Discharged, 03/30/2011

          Comment

            #6
            TT won't want anything to do with the dormant LLC. It is not an asset so as long as you list it in the appropriate section and indicate value at 0, then that should be the end of that. No further action and as soon as you are disch from Bk then use away on the LLC.

            I would caution you from using the LLC cc prior to filing. By doing so and repaying it 100%, if within 120 days of filing you have technically shown preferential payment to that creditor; so don't chg within 120 days of filing and that card may remain in tact to be used later.

            Comment

              #7
              I appreciate you help. Mensa, When I use it and pay it off Im talking about maybe $50 to $100 at the most on any given month, And any more it is pretty rare, Only when I am running a little low on grocery funds. Would they even care about that amount. Pretty much anymore I use Cash.
              Chapter 7
              Filed, 12/21/2010
              Discharged, 03/30/2011

              Comment

                #8
                Originally posted by etechjc View Post
                Would they even care about that amount. Pretty much anymore I use Cash.
                Yes. It is preferential payment to a creditor. TT could go to the creditor and recover the funds or require that you pay the TT the amount that you have paid the cc creditor in the preceeding 120 before filing date. And... by all means you do not want to have any balance owed on that acct at the time of filing or else it mut be listed and the acct will be closed for sure.

                The main objective at this point is to have inactivity in the acct for 121 days minimum before filing date and then the creditor is none the wiser, and the acct stands a chance of surviving Bk and if so, you have instant credit on day 1 of disch.

                Comment

                  #9
                  Ah, I see. Thank you.
                  Chapter 7
                  Filed, 12/21/2010
                  Discharged, 03/30/2011

                  Comment

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