We are considering filing a chapter 7
BK. There are two main questions:
1. It looks like in BK, you are expected to turn over "books and records" of any business you have owned or operated in the past six years.
In my case, I have about five corporate entities set up, each has bad paperwork. The entities had minimal operations, no revenue, and were essentially used by me to operate a few small internet businesses. But the paperwork is bad--each "corporate kit" essentially looks the same as the first day I got it , years ago. forms were not filled out, formalities were sporadically documented, if at all; even some of the corporate stock shares had not been assigned to anyone yet, despite years of moving a decent amount of money in and out of at least one of the corps. Much of the sporatic recordkeeping can be found online, as opposed to in a corporate kit. Maybe it would be a better idea to make a subfolder on dropbox and give whoever wants access, a password, so they can see everything for themselves.
So, if I were to show up to bankruptcy court
with some of the types of documents I mention above, will the BK court get mad, ask me why I didn't keep better records, and possibly dismiss my case? Or exactly what do they want to see, what is the expectation? If I show up with a few quickbooks printouts for each of the corps., to demonstrate assets and cash flow, is that enough?
2. During BK, how much control would I have to move around money in my bank accounts? Do I need to ask the BK people for permission to do transactions? Will they BK people freak out if a few of my corporate entities are still paying bills, winding down their business, or doing minimal transactions while I was going through the BK process?
3. Does the bankruptcy court use technology for its cases, or is everything still on paper documents in cardboard boxes? In what format do you hand over documents to the bankruptcy court, paper or digital (pdf, etc.)?
4. For a fairly complex Chapter 7, How many times do you need to visit the BK court, make physical appearances, before the case is over? Can you have a phone conference instead? How does everyone usually interact with each other, there? Teleconference or "in-person?"