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 cortrightlaw Your Own Question
cortrightlaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 513
Experience:  Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
Type Your Bankruptcy Law Question Here...
cortrightlaw is online now
A new question is answered every 9 seconds

If I am a business owner and I have two different businesses

This answer was rated:

If I am a business owner and I have two different businesses both LLC form 1065 (my spouse and myself are owners). If we are filing Chapter 7, can I start a new business with an outside partner or do I need to wait until my bankruptcy is discharged ?

cortrightlaw : You can start a new company after the date of your filing, I usually advise my clients to wait until after the 341a hearing to make sure everything goes okay and that the trustee is not going to be lookin for anymore information.

I am asking actually because I have a business and a potential partner is about to file Chapter 7. He has a retail store that is actually worth saving. We were going to form a new LLC, the other company I have is a wholesale company. Is it wise for me to do this while he is in Chapter 7 or should I wait? His bankruptcy is over 4 million dollars. I have spent a great deal of time creating my brand and do not want to tarnish it with anything negative. What would you advise ?

cortrightlaw : I would wait until his bankruptcy is complete and he receives his discharge. You do not want to get involved in a mess.

Would it be okay for him to be an employee or a contracted basis ?

cortrightlaw : For you yes, for him maybe not as the income could affect his bk. what you don't want to do is be involved in him hiding any assets from his prior ventures into your new venture.

Okay, so he basically has a little bit of inventory. I am going to use a new name and renegotiated the lease. I realize I would need to purchase the inventory from him but is there anything else ? He has no goodwill.

cortrightlaw : No that should be fine as long as he lists all his assets and the trustee has not interest in his business for liquidation purposes.
cortrightlaw and other Bankruptcy Law Specialists are ready to help you