QUESTION
Will I lose my small business in a chapter 7 filing?
Asked on Jul 12th, 2011 on Bankruptcy - Florida
More details to this question:
I am going to file for bankruptcy, chapter 7, to get rid of overwhelming debt about 37,000 in debt. I have a small business I registered as an LLC, i have made no money with it what so ever. I would still like to work on it. Will I lose my business in filing chapter 7?
10 ANSWERS
Samuel Lee Tucker
Your interest in the LLC would be included in your bankruptcy estate. Just form another.
Answered on Jul 18th, 2011 at 1:09 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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When a bankruptcy is filed all assets must be disclosed. For instance, if the debtor owes a business such as an LLC the trustee has ownership of the asset subject to debtor's exemptions. This may be a situation where a chapter 13 should be filed to retain the business.
Answered on Jul 18th, 2011 at 1:06 PM
Bankruptcy & Debt Attorney serving San Diego, CA
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Jackie Robert Geller Attorney at Law
Depends on whether your interest in the LLC has any value. Talk to an attorney right away.
Answered on Jul 18th, 2011 at 12:15 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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You will be able to keep your business if you can exempt all the value of the business. If the business is not making a profit then its value is only the fair market value of the assets the LLC owns. You can exempt or protect a certain amount of property. The LLC is property and its value is the sum of the value if the assets in the name of the LLC. You need to see a bankruptcy lawyer to see how much property you can exempt. Property that you can not exempt can be sold by the bakruptcy trustee to pay your creditors. You should not even think about filing a bankruptcy case without an experienced bankruptcy attorney representing you.
Answered on Jul 18th, 2011 at 10:06 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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You might be better off closing it. You've lost so much money on it that it probably won't turn a profit. If the trustee thinks it could turn a profit, s/he will likely take it over.
Answered on Jul 18th, 2011 at 10:01 AM
Spencer Hale
It depends on the value of the business's assets. In a chapter 7 you always run the risk of the Trustee shutting down the LLC to liquidate the assets. You could try a chapter 13 if the business has significant assets.
Answered on Jul 16th, 2011 at 6:32 AM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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No if the company has no value the chapter 7 trustee will abandon the estate's interest and it will revert back to you. Please call to schedule a free consultation.
Answered on Jul 16th, 2011 at 6:15 AM
Glen Edward Ashman
Possibly, and that is a very good reason to have a good lawyer, as the lawyer may know how to protect that interest. Generally, if the business has no value and no assets the Trustee won't want it, but he may find value in the name, customer lists and phone number. A good lawyer is invaluable as they will know how to present this to Trustee to discourage his interest or minimize his interest. Doing a case yourself would be a good way to mess up here.
Answered on Jul 16th, 2011 at 6:14 AM
Trusts and Estates Attorney serving Jacksonville, FL
Partner at
Law Office of David M. Goldman PLLC
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If it is a multimember LLC, it will generally be protected under Florida's new LLC protections. You might wast to talk with an asset protection lawyer about your options and risks
Answered on Jul 16th, 2011 at 6:12 AM