Legal Question in Bankruptcy in Virginia

We filed a bankruptcy under Chapter 7 approx. 2 yrs ago. My husband had an LLC at that time. Dec. 2009 we received notice that the bankruptcy was approved but had to provide an inventory of business assets. Spoke with our attorney and was instructed nothing else to do. A no asset letter was not provided by the Trustee; however our home loan modification continues to pend due to non asset letter production. Received a call 12/3/2010 from Trustee's office regarding the sale of these assets. They said the inventory as presented a year ago should have been preserved pending possible sale of it. I told them we were unaware of this and had used some of the inventory to continue doing business. They said we could buy it back. Since filing bankruptcy we have had a reduction in income as well as having to pay over $4,000 to IRS 2 months ago for 2009. If we were to submit a bid to purchase this inventory, is it based on a percentage of the cost amount? Example, $10,000 of inventory - bid $1,000? What is the likelihood of them accepting this. The trustee's office also explained that since the inventory had not been preserved that the trustee could decide to reverse the bankruptcy. Is this something done normally? My attorney is not returning my calls and I am quite distraught over this.

Asked on 12/05/10, 8:12 am

1 Answer from Attorneys

Daniel Press Chung & Press, P.C.

The assets of the LLC are not directly assets of the bankruptcy estate, and unless the trustee took over the LLC, s/he had no direct right to control the disposition of its assets. If your attorney is not returning your calls, you may want to consult with another lawyer.

Read more
Answered on 12/10/10, 9:10 am

Related Questions & Answers

More Bankruptcy Law questions and answers in Virginia