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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Just spoke with my CPA. He also thinks that Trustee may make

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Just spoke with my CPA. He also thinks that Trustee may make me close the corporation. AS per its last tax return, its assets are: computer(2008 laptop worth 100-200$)Ipod (worth 100-150 $) and appprox. $ 100 worth of exercise equipment. These along with my car are listed on my tax schedule K "Shareholders Pro Rata Share Items as Buildings and other depreciable assets and listed one by one in Future Depreciation Report. CPA told me, since I am the only shareholder, IRS allows to pass car through a Corporation. I hope all of it makes sense to you. Now come my questions. If Trustee seizes, closes my Corporation ( to which I have resigned myself), will it take a car ( value 13.5 K, owed 14.950)? I spoke with my corporation's business, who give it work, and they have no problem signing me up under SS, W-2 as subcontractor. But I need a car for my work! I drive to see my patients.
*This chat is not intended as legal advice. It is general information that may or may not apply to your situation and should not be relied upon.*

Hi!

The trustee would typically not take the car.

The trustee will only concern himself with assets that have a value for the benefit of creditors. Since the car is in a negative equity position - the loan is greater than the value – the car has no benefit to creditors
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