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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2900
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I am considering filing for Chapter 7 bankruptcy due to accumulated

Resolved Question:

I am considering filing for Chapter 7 bankruptcy due to accumulated credit card debt in the amount of 60K. How will filing a personal Bankruptcy impact the business I am a shareholder in? The business has accumulated only losses in the past 3 years, but I am continuing putting efforts and time in it. Shall I leave the company?

What are the proper steps I should take in proceeding with the bankruptcy case?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 7 years ago.
Hi and thank you for your question.
Your case should have no impact in the business that you are a shareholder in.
The business is not affected by your filing.
The issue is the value of your shares. They are an asset in your bankruptcy case.
If there is value to them, the trustee can request the other shareholders to purchase them from the trustee, with the proceeds to be paid to your unsecured debt. Talk to a local bankruptcy attorney about the value so they can best design your case. Sale or transfer of the shares before bankruptcy must be disclosed in the case as well, so that is usually not recommended unless you are receiving fair market value, for which the cash becomes an asset. In IL the exemption available is the wildcard, only $4000 to cover all cash, bank accounts, furniture, jewelry, so it would be an asset too. If the shares have no value (meaning the business isn't worth anything) then there is no issue, and you can keep them if you choose.

A local bankruptcy attorney can review your case, as well as the estimated value of the shares to confirm if chapter 7 is the best option. Most offer free consultations to get you advice. Good luck and thank you for your question.
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