Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
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If you own 100% of the C Corp then it is an asset the trustee in a chapter 7 case can take and try to sell or ask you to buy it back from him. One of the trustees here where i am always used a business valuation person who always put a high value on the business and he might say if you wish to enter an agreement to pay me $50,000 over 2 years then you can keep it. It all depended on the client, but if you provide personal service they can't force you to work and I would bluff the trustee at times by just saying you can have a single member Corp and the guy everyone wanted won't be there anymore. I would usually negotiate the price down considerably or just give it to trustee and it was not unheard of to later have trustee indicate he was abandoning the asset (comes back to you. ) If you have a business with client list that is making money selling widgets then none of this will apply as that is the kind of business someone might buy from him at a steep discount.
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So you know the same holds true outside of bankruptcy. A corporation shields you from liability from your employee killing someone in a wreck, but since you are the single owner if a creditor sues you once they obtain a judgment they can execute against the assets of the business including accounts receivable, etc.