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Ray
Ray, Lawyer
Category: Legal
Satisfied Customers: 37056
Experience:  30 years in civil, probate, real estate, elder law
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Own a small business. Looking to downsize or close.

Customer Question

Own a small business. Looking to downsize or close.
JA: What state are you in? It matters because laws vary by location.
Customer: Louisiana
JA: Has anything been filed or reported?
Customer: I am looking into filing bankruptcy due to personal guarantees. Roughly about 100,000 in debt . Business deposits show approximately 20,000 month in deposits but that is not pure profit lol. My question is this can i qualify for chapter 7 and also i have a 2013 jeep cosigned with my wife and a 2012 dodge ram 2500 financed through me also own a 2000 isuzu rodeo 2003 ford pock up neither of which are worth much ford been wrecked twice. But also own a cargo trailer utility trailer and a boat trailer. Is bankruptcy an option and what would we lose as far as vehicles and trailers Yes i have a judgement for a business debt and another auit starting for another business debt. Need a fresh start. Is it possible and what are my options. Also wife had heart issues last year which really took its toll financially and starting to impact her good credit should she file also or just me
Submitted: 22 days ago.
Category: Legal
Expert:  Ray replied 22 days ago.

Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question and respond.

Expert:  Ray replied 22 days ago.

In Chapter 7 you can only exempt one vehicle and none of the trailers.The time to unload the rest is now prior to filing for bankruptcy.

Expert:  Ray replied 22 days ago.

Exemptions by law

Expert:  Ray replied 22 days ago.

omestead or Residential Property

Up to $35,000 in equity in the home in which you live and the land on which it sits. The Louisiana homestead exemption is limited to five acres if it’s located in a town or city or up to 200 acres if not located in a town or city. Spouses may not double the Louisiana homestead exemption. For obligations arising as a direct result of a catastrophic or terminal illness or injury, you may exempt the full value of the home (based on home value in the one year prior). If you are the spouse or child of the owner and the owner is deceased, or if you were given the home by means of a divorce decree, you may use the homestead exemption. La. Rev. Stat. Ann. § 20:1

For more details about how the homestead exemption works in Louisiana, see The Louisiana Homestead Exemption.

Insurance Benefits

Insurance proceeds for exempt property damaged by a natural disaster. La. Rev. Stat. Ann. § 13:3881

Motor Vehicles

To $7,500 of equity (based on NADA value) in one motor vehicle used by you and your family. You may also exempt up to $7,500 of equity in one motor vehicle which is modified or fitted to assist you or a family member with a physical disability. La. Rev. Stat. Ann. § 13:3881

To learn more about how to exempt your motor vehicle under Louisiana law, see The Louisiana Motor Vehicle Exemption in Bankruptcy.

Personal Property

The household goods and furnishings, appliances, clothing, family portraits, arms and military accouterments, musical instruments, poultry, fowl, one cow, dogs, cats, other household pets, and wedding or engagement rings up to $5,000 in value. La. Rev. Stat. Ann. § 13:3881

The money you receive from the Federal Earned Income Tax Credit is exempt. La. Rev. Stat. Ann. § 13:3881

Related Ads

Pension, Retirement, and Life Insurance Benefits

All qualified pensions, tax-deferred arrangements, annuity contracts, and proceeds of and payments under tax-deferred arrangements and annuity contracts. La. Rev. Stat. Ann. § 13:3881

Public Benefits

Aid to blind, aged, disabled; public assistance. La. Rev. Stat. Ann. § 46:111

Crime victim's compensation. La. Rev. Stat. Ann. § 46:1811

Earned income tax credit. La. Rev. Stat. Ann. § 13L3811(A)(6)

Unemployment compensation. La. Rev. Stat. Ann. § 23:1693

Workers' compensation. La. Rev. Stat. Ann. §23:1205

Wages

75% of disposable earnings or 30 times the federal minimum wage, whichever is greater. La. Rev. Stat. Ann. § 13:3881

Tools of the Trade

Tools, instruments, books, one utility trailer, and one firearm with a value up to $500. La. Rev. Stat. Ann. § 13:3881

Expert:  Ray replied 22 days ago.

Homestead or Residential Property

Up to $35,000 in equity in the home in which you live and the land on which it sits. The Louisiana homestead exemption is limited to five acres if it’s located in a town or city or up to 200 acres if not located in a town or city. Spouses may not double the Louisiana homestead exemption. For obligations arising as a direct result of a catastrophic or terminal illness or injury, you may exempt the full value of the home (based on home value in the one year prior). If you are the spouse or child of the owner and the owner is deceased, or if you were given the home by means of a divorce decree, you may use the homestead exemption. La. Rev. Stat. Ann. § 20:1

For more details about how the homestead exemption works in Louisiana, see The Louisiana Homestead Exemption.

Insurance Benefits

Insurance proceeds for exempt property damaged by a natural disaster. La. Rev. Stat. Ann. § 13:3881

Motor Vehicles

To $7,500 of equity (based on NADA value) in one motor vehicle used by you and your family. You may also exempt up to $7,500 of equity in one motor vehicle which is modified or fitted to assist you or a family member with a physical disability. La. Rev. Stat. Ann. § 13:3881

To learn more about how to exempt your motor vehicle under Louisiana law, see The Louisiana Motor Vehicle Exemption in Bankruptcy.

Personal Property

The household goods and furnishings, appliances, clothing, family portraits, arms and military accouterments, musical instruments, poultry, fowl, one cow, dogs, cats, other household pets, and wedding or engagement rings up to $5,000 in value. La. Rev. Stat. Ann. § 13:3881

The money you receive from the Federal Earned Income Tax Credit is exempt. La. Rev. Stat. Ann. § 13:3881

Related Ads

Pension, Retirement, and Life Insurance Benefits

All qualified pensions, tax-deferred arrangements, annuity contracts, and proceeds of and payments under tax-deferred arrangements and annuity contracts. La. Rev. Stat. Ann. § 13:3881

Public Benefits

Aid to blind, aged, disabled; public assistance. La. Rev. Stat. Ann. § 46:111

Crime victim's compensation. La. Rev. Stat. Ann. § 46:1811

Earned income tax credit. La. Rev. Stat. Ann. § 13L3811(A)(6)

Unemployment compensation. La. Rev. Stat. Ann. § 23:1693

Workers' compensation. La. Rev. Stat. Ann. §23:1205

Wages

75% of disposable earnings or 30 times the federal minimum wage, whichever is greater. La. Rev. Stat. Ann. § 13:3881

Tools of the Trade

Tools, instruments, books, one utility trailer, and one firearm with a value up to $500. La. Rev. Stat. Ann. § 13:3881

Expert:  Ray replied 22 days ago.

I appreciate the chance to help you today.

Expert:  Ray replied 22 days ago.

You may have to sell nonexempt

items here prior to filing.

Expert:  Ray replied 22 days ago.

Happy Thanksgiving and the best to

you.If you can rate 5 stars it

is much appreciated.