QUESTION
Am I liable to pay him the 1/2 of the fair market value?
Asked on Sep 07th, 2013 on Bankruptcy - North Carolina
More details to this question:
We have a registered ministry organization, we have a contract to buy an RV. One of our pastors was asked to leave. He now wants 1/2 of the fair market value. This RV was given to us at a very low price and on a contract. Under the pretence that we will not sell it for a profit. We are paying $3000 for this RV. We have already paid $450 each. I know I will probably have to repay that, but we have used it equally for everything we have done, except we have used it for one local event that he did not attend. His name is not anywhere on the group and is not on the contract. My name is on the contract, and my name and the seller is a lean holder on the title. Am I liable to pay him the 1/2 of the fair market value? When I am not able to sell it at any price over the $3000, we are paying for it. We still owe $2200.
2 ANSWERS
Debt Collection Attorney serving Chicago, IL
Partner at
Edelman, Combs, Latturner & Goodwin, LLC
2 Awards
Until you realize more than what you paid, he should not have a claim. He may be entitled to get some or all of what he paid back.
Answered on Sep 10th, 2013 at 12:07 PM
If this is a nonprofit, then he cannot receive any payment for his ownership. It this is not a nonprofit, you should get your CPA to tell you what's the company's net worth. I am sure that the RV is underwater, which means he cannot get any value from it in his payout.
Answered on Sep 10th, 2013 at 12:01 PM