Liquidating assets before bankruptcy
If a trust is created outside of Chapter 11 of the Bankruptcy Code, a private letter ruling may be requested if conditions of Revenue Procedure 82-58 are met.
Under Revenue Procedure 82-58, the IRS will issue a private letter ruling if 8 conditions are met.
We will come out and give you an offer and because we have the cash waiting for you, we will be able to get you out of your home fast before you start to file for divorce.
The remaining assets and liabilities are transferred into the newly formed trust and the former owners of the liquidating fund become unit holders or beneficiaries of the trust.
Should the purpose of the entity change, such as to carry on a for-profit business, then the entity will no longer be considered a liquidating trust.
Also, if the time period is unreasonably prolonged, the status of the entity may change from a liquidating trust.
You already have to pay for your divorce so you probably don’t want to pay for a lawyer to sell your house on top of everything else. If you can, sell your house before filing for divorce.
Once you have made the decision to get a divorce you probably don’t want to wait the time it takes to sell your home on your own or with a realtor.