Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
I think you may not know how JustAnswer.com works, as you have not "accepted" or provided a rating for the previous 2 questions that I answered for you.
Please go back and provide ratings for those questions before continuing with another question.
Done, sorry about that....
The form of your new business will not protect it from the Bankruptcy estate. In other words, whatever your business owns will be imputed to you, regardless of whether the business is a corporation or a sole proprietorship.
However, if your business has only around $3,000 worth of assets, you will be to keep those, as that amount is well below the applicable exemption.
I think this is what you wanted to know. If not, please let me know.
Let me be more specific: I have one secured creditor (cash advance from credit card sales) that is secured (filed UCC) and I have $2K in value in the new business when I file BK will it still be exempt? In other words, Old business is closed, some cash from the liquidation, new business has $2K in tools.
The total available exemption (protection) for your business will depend on whether you would have to use the homestead exemption to protect your home, and how much of the exemption you would have to use. Please answer the following:
1) Do you own a home?
2) If yes, what is the current market value of your home?
3) If yes, what is the balance on the mortgage(s)?
1) no 2).. 3).. Thanks!
Thank you for your response.
Since you do not have to use the homestead exemption, the applicable exemptions are $2,200 for "tools of the trade" - which would be your business equipment, in addition to a $23,250 "wildcard" exemption - which can be used for any and all other property, including the amount over $2,200 that your business owns.
So, you would be able to keep your business' assets if you file a Bankruptcy. It does not matter that the money for those assets came from the liquidation of your previous business.