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Category: Bankruptcy Law
Satisfied Customers: 17223
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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We plan on filing a chapter 7 bankruptcy (Washington State)

Resolved Question:

We plan on filing a chapter 7 bankruptcy (Washington State) in the next couple months which will take out personal debt as well as loans used for our corporation (secured by equipment and A/R and personally guaranteed by us), which will cease business.

We also plan to start up another business as soon as possible. But I do not understand the timing to do this.

We have a lawyer, who has indicated that it should all happen after we file. But someone else mentioned we should set up the new company now and start performing work through it while we let the other corporation "fizzle out".

We are concerned that this may be fraudulent, but it would certainly help keep A/R in a different corporation and (we assume) out of the hands of the bank.

Any insight on this would be appreciated.
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 5 years ago.


Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on


Your first attorney was correct,


you should begin the process of creating and running the new business after the bankruptcy process,


Once you file a bankruptcy, all personal assets including shares of a corporation,


can be taken by the trustee, and if you start a new corp, the corp assets can be potentially taken,


Their is no downfall in waiting after the bankruptcy, you can than create a new corp and start to run the business without any worry of a trustee coming after your business

WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you