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-   -   Boating Partner Claiming Bankruptcy, Need Help (http://www.mastercraft.com/teamtalk/showthread.php?t=57113)

kkkeating 08-30-2013 01:35 PM

Boating Partner Claiming Bankruptcy, Need Help
 
Our family owns 50% of a boat, 2001 X-9, with another family. They have title, but we have a written contract with them that was executed in 2008. Unfortunately, we never got around to working out the title with DMV. I just learned they're about ready to file for bankruptcy. Is there anything I can to do to protect our assests? My understanding is that once they claim bankruptcy, everything goes to a trustee, and at that point it's outside my control. Any help or recommendations would be appricated.

kgrove 08-30-2013 01:39 PM

Can you offer to buy the other half of the boat from them before they file?

JMann 08-30-2013 01:41 PM

Couldn't they sell you half for minimal $$ like $100 and transfer title to you, then you both get to keep the boat but it's in your name.

Double D 08-30-2013 01:42 PM

Quote:

Originally Posted by JMann (Post 973785)
Couldn't they sell you half for minimal $$ like $100 and transfer title to you, then you both get to keep the boat but it's in your name.

Thats what I would suggest. Whatever you do, get it out of his name.

thatsmrmastercraft 08-30-2013 01:44 PM

There are some sales that cannot happen prior to bankruptcy. I suspect this may be one. I would consult a bankruptcy attorney today.

gsxrjtt 08-30-2013 01:54 PM

I agree with Jman some friends of the family did that with their boat and it worked out just fine

kkkeating 08-30-2013 01:57 PM

I've looked into the option of buying the boat for a minimal price, but the problem is the Trustee can go back after the fact and claim it's a fraudulant sale, then reposse the boat. It makes sense, otherwise everyone would just sell all their assets for pennies to friends/relatives just before they claim bankruptcy.

Double D 08-30-2013 02:03 PM

Quote:

Originally Posted by thatsmrmastercraft (Post 973789)
There are some sales that cannot happen prior to bankruptcy. I suspect this may be one. I would consult a bankruptcy attorney today.

Yeah, and tell your 'buddy', to let you know more in advance next time! :(

gweaver 08-30-2013 02:08 PM

If your buddy is filing, he's probably working with an attorney. Might be a good time to schedule a meeting with the two of them, so the lawyer knows what's going on. Selling it for a ridiculously low price is a red flag, but if it was sold for a reasonable price (80% of current value of his half or something) it might be OK. That's a lawyer question, but I would think that since you're part owner, you're entitled to some sort of compensation because of the legal/binding agreement of shared ownership.
Just thinking out loud, but I wonder what would happen if you filed for a lien against the value of the boat, seeing as how you're legally a half-owner of it.
It might also be worth trying to get the DMV paperwork rolling, to help prove you legally have part ownership in the boat.
In any case, I'd strongly suggest talking to a lawyer. That's going to be the best chance of protecting your share in this boat. It'll probably cost $$ but that's nothing compared to the cost of losing the boat.
G

kkkeating 08-30-2013 02:22 PM

My boating partner(the "buddy" term has been dropped!) has been working with an attorney and has been very forcoming about everything. Gweaver, I like the suggestion about meeting with the two of them. The DMV paperwork probably wouldn't work out, as he has a loan on the boat and wouldn't be able to pay the debt amount, as such the loan company would not want to release title. I agree the best thing to do is consult with attorney now and lose a little money as opposed to losing a lot of money later on.


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