How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ellen Your Own Question
Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
9968427
Type Your Bankruptcy Law Question Here...
Ellen is online now
A new question is answered every 9 seconds

My corporation gets paid bi-weakly. It pays my reasonable business

This answer was rated:

My corporation gets paid bi-weakly. It pays my reasonable business expenses; car, gas (driving for work),,cell phone, fax line car insurance, my health insurance premium, liability insurance, cont'd education exp. it pays its share of my taxes;fica and ss. marketing, some meals and entertainment etc. Al according to IRS guidelines. I have two entities ( people) doing some contractual job form me. At the end of the month, I break even at most . Assets are worth approx $100. according to incorporating docs, I "own" 500 shares, priced at $ 500. Would the trustee seize this small of a corporation. It would put all 3 of us in seriously dangerous financial distress!
*This chat is not intended as legal advice. It is general information that may or may not apply to your situation and should not be relied upon.*

Of course anything is possible however it is almost certain that the trustee will seize the business.

The trustee is paid a percentage of the assets administrated for the benefit of creditors. Additionally the trustee owes a fiduciary duty to the creditors to maximize the distribution available to the creditors.I cannot imagine a scenario in a chapter 7 bankruptcy where the trustee would not seize assets with equity of even $10,000.

If you do file a chapter 7 bankruptcy personally you will need to be prepared to lose the corporation
Customer: replied 4 years ago.

My corporation has no assets. there is no inventory. I use car 90% for work ( I owe on it market value and will reaffirm it in bk), hence the expenditures through the corporation. The only assets are money in the bank minus liability ( check owed for services, bills). It is seldom, that I have more than 1 k in my business checking account on any given day. Would trustee really seize that!!?

My corporation has no assets. there is no inventory.
You stated that the Corporation owned exercise equipment. The exercise equipment is an asset. The corporate phone number (goodwill) in some situations is also an asset. Any contracts the corporation has are also assets


I use car 90% for work ( I owe on it market value and will reaffirm it in bk), hence the expenditures through the corporation. The only assets are money in the bank minus liability ( check owed for services, bills). It is seldom, that I have more than 1 k in my business checking account on any given day. Would trustee really seize that!!?
Whether a trustee will seize $1000 in a checking account is dependent upon the particular trustee. $1000 in total assets would not necessarily be financially worthwhile for the trustee.
Ellen and 3 other Bankruptcy Law Specialists are ready to help you
Customer: replied 4 years ago.

Thank you very much for your precise answers. I think for now I am ready to start filling out paperwork. Planing on filing on Oct.1-2. As I go through all documents , I will contact you with further questions. Thank you again!!!!

I wish you the best of luck. If you find that you need additional assistance, please remember to start your question with "For FiveStarLaw" so that it is directed to me. I also think that based upon the information that you have presented that you will want to seriously consider a chapter 13 as opposed to a chapter 7. Remember in a chapter 13 it is only your disposable income that is used to fund the plan and it could allow you to keep your corporation and strip the 2nd lien positions on your properties

Related Bankruptcy Law Questions