[AlpacaTalk] Re: Contract Extensions
I had a really great question pop up on this subject that I would like to clarify...
Someone asked me "How can it be that the court is asking for the last payment back if the Seller is not listed as a creditor?"
Answer: Due to the bankruptcy reform act that happened just a few years back. A trustee can now reclaim any payments made to anyone with in 90 days of filing chapter 7. This was set up to reduce fraud that was occurring.
The fraud that was occurring was primarily between families/friends. A person going bankrupt would prefer to pay back a family/ friend loan before they would pay credit card debt. Especailly of they were planning on filing bankruptcy. The trustee can re-claim those monies from YOU to pay down all debts equally.
For example.....
When asked by the trustee where the big debit on her bank statement was destined for...The buyer said it was "my" final alpaca payment. The trustee then asked who the seller was and if that person was family.(A trustee can go back 1 year on payments made to family members) The buyer said not family but a "friend". That was a major error in language for the buyer! That statement of "friend" set the wheels in motion for the intimidation letter that the Seller received in the mail from the trustee.
These days, trustees will look at bank records of the person filing and demand any monies that are $1000.00 or better. Often times this is done with out looking to see if the person filing has made other payments to creditors on time (Which this gal was making all her payment but had no money for gas,food, etc). The trustee just don't care. It is their job to collect as much money as they can so that it can be redistributed evenly to all creditors. This was something that the buyer was never made clear on. She just thought that her personal assets would be liquidated.
Also, This particular chapter 7 filing is a personal filing not a business filing. The buyer truly feels that the court does not understand that her Alpacas are in an LLC. This is one part of the battle. Since this fight is between the Seller and the Trustee, the buyer is fearful that this will not be a clear point made. So, unfortunately the burden of proof now falls on to the seller.
Hence the importance of proving that this type of an extension can occur with any breeder.
The sellers attorney is trying to attack this with as much ammunition as he can find. I don't blame him. Our industry is different than most people are used to and it is not an industry that every one knows about.
Believe me when I tell you that the buyer really wants to take the gun off of her seller in any way that she can. She just wishes that the trustee was coming after her and not the Seller! Her hands are tied.
Keep the questions coming! It may just help out any of us someday if this gets squashed in court.
Be Well
Toni Kester
Spirit Eagle Alpacas
Lakewood, Wa
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posted by Chaddo at 11:46 AM
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