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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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How do I set up a new business that is free an clear of my

Resolved Question:

How do I set up a new business that is free an clear of my personal bankruptcy? My current business, a LLC, is getting entangled in my chapter 7 bankruptcy.
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
Will you need to use any assets that you or your current LLC owned before your Bankruptcy was filed to set up a new business?
Customer: replied 5 years ago.
Yes, is there a way to transfer assets for market value that won't get challenged by the bankruptcy court?

Or is it better to start over from scratch?
Expert:  cfortunato replied 5 years ago.
If you transfer to a new company any assets that you or your current LLC owned when you filed your Bankruptcy, those assets will still be part of the Bankruptcy estate. This means if the assets are non-exempt, the Bankruptcy trustee can take them even though transferred to a new company.
This cannot happen if you use assets that were acquired after your Bankruptcy was filed, or if none of your or your current LLC's assets are used to open a new business.

I think this is what you wanted to know. If not, please let me know.
Thank you.
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