Saving small business assets through personal bankruptcy?
June 6, 2010 
2 Comments
helpme asked:
I have a small business… sole proprietorship…. i’m having to file personal bankruptcy…mostly credit card debt and medical bills. Can I protect my business assets (my computers and some other stuff are exempt under Ch 7, but not office furniture which exceeds the personal exemption) if i convert it to a corporation a few months before filing?
I have a small business… sole proprietorship…. i’m having to file personal bankruptcy…mostly credit card debt and medical bills. Can I protect my business assets (my computers and some other stuff are exempt under Ch 7, but not office furniture which exceeds the personal exemption) if i convert it to a corporation a few months before filing?
Probably not, since you would own the stock in the corporation, and the stock would be part of the bankruptcy estate. Consult a qualified bankruptcy law attorney though.
Go talk to 3 different BK lawyers and get the 1 hour free evaluation from each. Then decide what you need to do based on their recommendations and your State’s laws.