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 Barrister Your Own Question
Barrister
Barrister, Attorney
Category: Legal
Satisfied Customers: 33702
Experience:  15 yrs practice, Civil, Criminal, Domestic, Realtor, Landlord 26 yrs
19958803
Type Your Legal Question Here...
Barrister is online now
A new question is answered every 9 seconds

I will be filing bankruptcy by the end of this year. The debts

Customer Question

I will be filing bankruptcy by the end of this year. The debts are from my ex-husband's construction business that "went under" during the recession. I have been working with a bankruptcy attorney in planning toward my filing. I did not work during the 20 years of marriage yet I was required during that time to co-sign every loan made to his company. I have had to find work, since I now receive only $665/month from my ex-husband. I am eager to find additional ways to make income to plan for my future retirement and have several options I am looking into as far as starting a business or getting involved in real estate. My fear is that any monies I make prior to the actual filing as well as any future monies that may come from a business I start now, prior to filing, will be "taken" by the courts. I want to get going on my future, but am afraid to put any of these plans/ideas into motion for fear that all that work will be affected in a negative way when I do file. Can you advise me on this? Can I plan to move ahead with these ideas now or do I have to wait until after filing? Or is there anyway to protect these new "businesses" from the bankruptcy courts by having them in an LLC?
Submitted: 1 year ago.
Category: Legal
Expert:  Barrister replied 1 year ago.
Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.
.
.
"Can you advise me on this? Can I plan to move ahead with these ideas now or do I have to wait until after filing? Or is there anyway to protect these new "businesses" from the bankruptcy courts by having them in an LLC?""
.
.
You don't want to start up any new business ventures prior to filing the BK case because those business ventures could be considered assets of yours that would be subject to liquidation and sale in any BK filing.
.
The BK trustee has a legal duty to take possession of any assets that you have an ownership interest in and sell them or the assets in them to use to pay creditors, excepting certain exempt assets.
.
Even if you set up LLCs, you still own the LLCs so those would be assets that you own.
.
So put very simply, it is always best to wipe out everything first and then start fresh with a clean slate for any new business ventures and then go with the LLC to protect you from personal liability.
.
.
thanks
Barrister

Related Legal Questions