Kevin R. McCarthy, VSB No. 14273

McCarthy & White, PLLC

1751 Pinnacle Drive, Suite 1115

McLean, VA 22102

703-770-9261

krm@mccarthywhite.com

Attorneys for Trustee

UNITED STATES BANKRUPTCY COURT

FOR THE EASTERN DISTRICT OF VIRGINIA

Alexandria Division

*************************************

In re: *

*

CHEOL MI RIM, * Case No. 15-13174-BFK

* (Chapter 7)

Debtor(s). *

*************************************

TRUSTEE’S MOTION TO SELL PROPERTY OF THE ESTATE BACK TO DEBTOR

Kevin R. McCarthy, Trustee, moves the Court for authorization to sell property of the 

estate back to the Debtor Cheol Mi Rim pursuant to 11 U.S.C. § 363(b) and Federal Rule of 

Bankruptcy Procedure 6004(a)-(b) on the terms and conditions set forth in his Notice Of 

Intention To Sell Property Of The Estate filed simultaneously with this Motion, and to take any 

actions provided therein without further Order of the Court, namely:

PROPERTY FOR SALE: all non-exempt assets of the Debtor, consisting primarily of 

her interests in Jun & Jin, Inc. ("the Restaurant"), a John Hancock Life Insurance Company 

policy ("the Policy"), and the real property located at 231 2nd Street, NW, Washington, DC 

20001 ("the Real Property").

LEGAL DESCRIPTION OF THE REAL PROPERTY: Lot 14 in C.A. McEuen's 

Subdivisions of Lots in Square 574, as per plat recorded in Liber H. D. C. at Folio 227 in the 

Office of the Surveyor for the District of Columbia. The Real Property tax identification number 

is Square 0575 Lot 0014.

TYPE OF SALE: Private.

PRIVATE SALE PRICE: $100,000, of which $25,000 has already been paid and is nonrefundable if the Debtor fails to close on the sale for any reason except failure of the Court to 

approve the sale. The Restaurant, the Policy, and the Real Property are being sold subject to all 

existing encumbrances. The Policy is collateral for a loan or loans to the Debtor by Freedom 

Bank of Virginia ("the Freedom Bank Loans"). The Real Property is also collateral for two loans 

to the Debtor by Freedom Bank of Virginia ("the Freedom Bank Loans"). The Freedom Bank 

Loans have a combined principal balance of approximately $575,000.

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VALUE OF PROPERTY FOR SALE. The Restaurant, which operates at the Real 

Property, generated a tax loss in 2014 and total earnings by the Debtor as employee of about 

$27,000 for a six month period in 2015. The Trustee does not believe it has meaningful value 

independent of the Debtor's contribution as an employee and its location at the Property. The 

Policy has a cash surrender value of about $10,000. The Real Property was appraised in March 

2014 for $655,000 in "as-is" condition and $720,000 in "as completed" condition, and is 

currently assessed for real estate tax purposes at $510,160. Prior to entering into the proposed 

sale arrangement, the Trustee consulted with an auctioneer/realtor, who suggested marketing the 

Restaurant and the Real Property for a combined price of $749,900.

BUYER: Cheol Mi Rim, the Debtor.

TIME AND PLACE OF SALE: Within three business days of Court approval. As a 

practical matter, no closing except payment of the remainder of the sale price will be necessary 

because the Restaurant, the Policy, and the Real Property are already in the Debtor Cheol Mi

Rim's name.

LIENS: None on sale proceeds. Both the Policy and the Real Property will remain as 

collateral for the Freedom Bank Loans.

 DEBTOR’S EXEMPTIONS: None.

TAX CONSEQUENCES TO ESTATE BY SALE: After consulting with his prospective 

accountant, the Trustee expects the proposed transaction to result in federal and state income 

taxes totaling approximately $15,000. If the same assets were sold to a third party for $749,900, 

the Trustee would expect the transaction to result in federal, District of Columbia, and state 

income taxes totaling approximately $100,000, due primarily to the Debtor's tax basis in the Real 

Property and the effect of depreciation recapture. As a result, although the net sale proceeds 

excluding income taxes from a third party sale for $749,900 (about $125,000) would be more 

than the net sale proceeds excluding income taxes from the proposed sale to the Debtor

($100,000), the net sale proceeds including income taxes from the proposed sale to the Debtor

($85,000) are expected to be more than the net sale proceeds including income taxes from a third 

party sale for $749,900 ($25,000).

NET SALE PROCEEDS ESTIMATED TO BE PAID TO ESTATE: $100,000.00.

APPLICABILITY OF FEDERAL RULE OF BANKRUPTCY PROCEDURE 6004(h): 

Entry of an Order granting the Trustee’s Motion will constitute a Court determination that the 

Order be immediately effective.

Wherefore, the Trustee requests the Court to enter the attached proposed Order.

Respectfully submitted,

/s/ Kevin R. McCarthy

Kevin R. McCarthy, VSB No. 14273 

McCarthy & White, PLLC

1751 Pinnacle Drive – Suite 1115

McLean, VA 22102

(703) 770-9261

krm@mccarthywhite.com

Attorneys for Trustee

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CERTIFICATE OF SERVICE

I hereby certify that on the 11th day of February, 2016 I served a copy of the foregoing, 

including the attached proposed Order, through the court’s ecf system on all registered ecf 

participants who have appeared in this case.

/s/ Kevin R. McCarthy

Kevin R. McCarthy

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