My mom got papers that a company which owes her 170K filed bk.

She personally provided the loan when my stepdad bought an interest in the
company. They were running it. It was a machine shop. The machines were
owned by the owner of the building. We'll call him Abe. Abe brought in his
bud Bill to be the CFO. My mom and stepdad ended up selling Bill their
ownership, they were being pushed out, Bill became the CEO and the company
was run into the ground. My mom and stepdad didn't get any money worth
speaking of for their part.

Bill, and the other partner (Clay) just filed BK. Both singly and the
corporation as an LLC. (3 filings). My mom got the notice as she is a
creditor. She thinks the chances of getting any money are slim to none.
However doesn't feel that she should not speak up. Before my mom and
stepdad left, Bill and Clay would submit expense reports for travel, meals
and such. The travel was from their home! No business meals. They were
raping the company.

Also, Bill filed singly, he is married, can he file as a single? Reason for
question is that his listed assets are only 6K. He has a house. We suspect
he has hidden assests, perhaps the house in his wife's name. Who know the
sneaky things this SOB has done, because it would fit a pattern!

1. is it worth her while to probably have to hire an attorney, to file an
answer and/or show up at the meeting of creditors?
2. How can she, or can she ensure the guy isn't hiding assets?
3. Being unsecured, does she even have a chance?

(This is Washington state)

Since Brett Weiss is out of town, I would suggest contacting a local
attorney ASAP to discuss this matter. Call around and find out who
offers a free consultation.

shcr wrote: My mom got papers that a company which owes her 170K filed bk. She personally provided the loan when my stepdad bought an interest in the company. They were running it. It was a machine shop. The machines were owned by the owner of the building. We'll call him Abe. Abe brought in his bud Bill to be the CFO. My mom and stepdad ended up selling Bill their ownership, they were being pushed out, Bill became the CEO and the company was run into the ground. My mom and stepdad didn't get any money worth speaking of for their part. Bill, and the other partner (Clay) just filed BK. Both singly and the corporation as an LLC. (3 filings). My mom got the notice as she is a creditor. She thinks the chances of getting any money are slim to none. However doesn't feel that she should not speak up. Before my mom and stepdad left, Bill and Clay would submit expense reports for travel, meals and such. The travel was from their home! No business meals. They were raping the company. Also, Bill filed singly, he is married, can he file as a single? Reason for question is that his listed assets are only 6K. He has a house. We suspect he has hidden assests, perhaps the house in his wife's name. Who know the sneaky things this SOB has done, because it would fit a pattern! 1. is it worth her while to probably have to hire an attorney, to file an answer and/or show up at the meeting of creditors? 2. How can she, or can she ensure the guy isn't hiding assets? 3. Being unsecured, does she even have a chance? (This is Washington state)

"shcr" <bizeesheri@aol.com> wrote in message
news:3f10e0f1$1_3@corp-news.newsgroups.com... My mom got papers that a company which owes her 170K filed bk. Bill, and the other partner (Clay) just filed BK. Both singly and the corporation as an LLC. (3 filings). My mom got the notice as she is a creditor. She thinks the chances of getting any money are slim to none. However doesn't feel that she should not speak up. Before my mom and stepdad left, Bill and Clay would submit expense reports for travel,
meals and such. The travel was from their home! No business meals. They were raping the company.

Section 727 of the Bankruptcy statute allows a creditor to file a complaint
blocking the ENTIRE discharge under certain circumstances. These
circumstances include fraudulent transfer or concealment of assets. If your
mother (as a creditor) is able to satisfy the trustee that these things
happened, these guys would not be able to discharge their debts under these
filings.


Also, Bill filed singly, he is married, can he file as a single?

Yes, even if you are married, filing jointly is optional.



Reason for question is that his listed assets are only 6K. He has a house. We
suspect he has hidden assests, perhaps the house in his wife's name. Who know the sneaky things this SOB has done, because it would fit a pattern!

He owns a house, and his listed assets are only 6K?


1. is it worth her while to probably have to hire an attorney, to file an answer and/or show up at the meeting of creditors?

I would schedule a free consultation with an attorney in your area and ask
the second and third part of that question. :-) There are too many
variables to answer . The attorney and herself would have to make a risk
benefit calculation to know if its worth her while.

Section 727 of the Bankruptcy statute allows a creditor to file a
complaint blocking the ENTIRE discharge under certain circumstances. These circumstances include fraudulent transfer or concealment of assets. If
your mother (as a creditor) is able to satisfy the trustee that these things happened, these guys would not be able to discharge their debts under
these filings.

Oops. I should have said you have to satsify the court, not the
trustee..the trustee is allowed to file a 727 complaint, as is the creditor,
with the court.


Rob


"Robert Stumpf" <rob@online-law-firm.com> wrote in message
news:bes51j$8jao2$1@ID-200874.news.uni-berlin.de... "shcr" <bizeesheri@aol.com> wrote in message news:3f10e0f1$1_3@corp-news.newsgroups.com... My mom got papers that a company which owes her 170K filed bk. Bill, and the other partner (Clay) just filed BK. Both singly and the corporation as an LLC. (3 filings). My mom got the notice as she is
a creditor. She thinks the chances of getting any money are slim to none. However doesn't feel that she should not speak up. Before my mom and stepdad left, Bill and Clay would submit expense reports for travel, meals and such. The travel was from their home! No business meals. They
were raping the company. Section 727 of the Bankruptcy statute allows a creditor to file a
complaint blocking the ENTIRE discharge under certain circumstances. These circumstances include fraudulent transfer or concealment of assets. If
your mother (as a creditor) is able to satisfy the trustee that these things happened, these guys would not be able to discharge their debts under
these filings. Also, Bill filed singly, he is married, can he file as a single? Yes, even if you are married, filing jointly is optional. Reason for question is that his listed assets are only 6K. He has a house. We suspect he has hidden assests, perhaps the house in his wife's name. Who know
the sneaky things this SOB has done, because it would fit a pattern! He owns a house, and his listed assets are only 6K? 1. is it worth her while to probably have to hire an attorney, to file
an answer and/or show up at the meeting of creditors? I would schedule a free consultation with an attorney in your area and ask the second and third part of that question. :-) There are too many variables to answer . The attorney and herself would have to make a risk benefit calculation to know if its worth her while.