380. Buyer and lender will handle asset sale without me, bankruptcy check takes us to near $0

Chapters

• 1:03 New Year's Eve Financial Update
• 1:13 Asset Sale Negotiations
• 3:52 Bankruptcy Trustee Demands All Cash
• 5:10 Finding Gratitude in Tough Choices
• 6:22 Starting Fresh at Zero

Transcript

Speaker 1: 0:32

Well, happy New Year. Today is New Year's Eve, so it's going to be a Happy New Year. I heard two items today the bankruptcy conclusion and the asset sale. So we'll start with the asset sale. So, basically, I talked to our bankruptcy attorney and said hey, we walked away from the business, we left our assets on site. The bank said they were going to seize them two and a half months ago and right now the bank is asking us to negotiate on their behalf what the asset sale should be, so that the buyer of this studio can buy the assets from us, even though the bank said that they were going to seize the assets two and a half months ago. And I asked her, I turned like hey, do we need to do? We have to be the one involved in this Because we could come up with a sale price, and if the bank doesn't approve the sale price, then I have to now renegotiate all over again. Do I have to be involved in what's going on here, or can we just let the bank seize the assets, like they said they would, and then we move on with our life? He said no, like it sounds simplest like just tell them that the bank has seized the assets, or you give your approval for the bank to seize the assets, and then the bank now owns the assets and, whether they're located on premises or they get picked up and hauled away, let the bank deal with this. Like this is not your problem anymore. And so finally got confirmation.

Speaker 1: 1:53

The buyer asked me like hey, nathan, hope you're having a great Christmas, just checking in, where are we at? On you drafting up the bill of sale items and then sending me the DocuSign so then we can submit this to the bank, so then we can see if the bank approves this, and then you sell the assets to me and then you handle the funds and then forward the funds to the bank. That's basically what the question was, but in fewer words, because he asked like hey, how's the draft going for the bill of sale and that's all the background behind it. So I got that feedback from my lawyer and fortunately he gave the response I was hoping for, which is kind of nice. And basically I told the bank and the buyer like like hey, hope you guys had a good Christmas. I give my consent or affirmation that, yes, the bank can go ahead and seize the assets, like you said you would, once they're seized bank and buyer you are free to go do the sale and that was the end of it. So I'd rather have that way. I don't want the funds going to me or my LLC and then I have to now deliver funds to somebody else. I don't want to do something wrong or be involved in something that's not my deal anymore, like this is the bank's issue and this is the buyer's issue, since I essentially abandoned the assets or similar to it. So there's that.

Speaker 1: 3:18

And then I heard back from my bankruptcy attorney. He said go ahead, write a check. Or basically the trustee came in and said okay, so based I'm the trustee for Nathan and family based on the assets of cash value and then some valuables, the total is this the total sum of all of the cash is a certain amount. I would like a check for that entire, 100% of that amount and then mail it to my office within 10 days. So that was kind of surprising.

Speaker 1: 3:53

The trustee basically wants every penny in our cash and our stocks and everything sent to her. Now we have some valuables like some firearms and some collectible cards and some electronics equipment, and those were excluded from the amount she wanted sent to her, and so fortunately, we've had like one or two paydays since we record everything. But yeah, they're basically asking for every dollar so we can buy groceries, but that's not much more than that. After our mortgage payment goes through, we basically have enough for groceries this month. So that was a surprise. They want every penny that we had at the time of us filling out all of the bank statements that we had at the time of us filling out all of the bank statements. So kind of strange, but it's a lot better than five years of monthly payments for five years.

Speaker 1: 4:44

So when we got the email, I'll admit I was really crabby, told my wife like I'm not really thrilled about this Kind of crabby, got into a little bit of a weird mood. But she reminded me like alternative is we owe everything, plus we lose the house and the cars, or we could have five years of monthly payments that we would not be able to afford. We'd have to basically sell our house to afford those payments. Um, and then this is option C. So between having to sell everything or a lot of stuff and having a one-time payment, or option B, a five years of unaffordable payments, or option C one-time payment, and we just go to zero. Of those three options, this is the most preferred option. So that was a helpful reminder.

Speaker 1: 5:33

Really grateful for my wifey, and yeah. So right now, just pull it to the post office. I have a check for almost every dollar that we have in our cash accounts. This morning was putting all the funds together so we can write the check in a few days. We go close to zero and then we'll be at a new slate. So kind of nice. We're doing it all on christmas eve or new year's eve and we'll be good to go. So head inside doing it right now, we're gonna find the joy, find the blessing and all this that's going on, because you never know when things are easy or hard, and right now it feels hard, but it's kind of easy as well. So that's where we're at, that's where we're going. Let's rock and roll.