if you file ch7 and your main source of income is from your LLC, and are a sole proprietor, are your accounts receivable in jeopardy?

Generally speaking, accounts receivable will be considered an asset in the bankruptcy if you are the sole owner of an LLC. The bankruptcy will protect your personal accounts from collections, and it will relieve you of any personal obligation to repay debts, but your LLC may still be held liable for business debts and business accounts may still be subject to collection efforts.  

Your interest in the LLC is an asset of your bankruptcy estate.  How you value your LLC really depends on a number of factors, but the accounts receivable certainly factor in to the value so that if you sold the LLC or liquidated its assets, there would be some value there.  If the LLC has no debts and you own 100% the shares, then all of the value of the LLC would belong to you.  Whether you can protect that value or not depends on the exemptions available in your case. Exemptions are "protections" for value you have in certain assets such that they are "exempt" from collections.  Every state has different exemptions amounts available. Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period.   To see more, visit http://www.bklaw.com/exemptions.html Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/ bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/ Follow Me on Twitter:  @bklawr