Can I keep my business if I file bankruptcy>? 16 Answers as of July 11, 2013

I have a full-time job and own my business; can I keep my business and house or will I have to sell it?

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The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
What you can or cannot keep depends on the values of those assets, the Chapter of bankruptcy you are filing, and the exemption laws applicable to your case. 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. Generally, to keep a "business" (assuming you are self-employed, and not a corporation) you will want to file either a Chapter 13 or Chapter 11. But there are a lot of factors to consider. You need to consult with a bankruptcy attorney in your area for more details.
Answer Applies to: California
Replied: 6/10/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
Whether or not you will be able to keep your house or your business is dependent on your individual circumstances. If you do not have sufficient exemptions, you may have to "buy" some of your equity or file a Chapter 13 instead of a Chapter 7. You should contact a local Bankruptcy Attorney to review your options.
Answer Applies to: New Hampshire
Replied: 6/10/2011
Daniel Hoarfrost, Attorney at Law
Daniel Hoarfrost, Attorney at Law | Daniel Hoarfrost
Keeping the business depends on whether or not it has any market value that a trustee can collect by selling it. For your house, you have a $40,000 ($50,000 if joint with a spouse) homestead exemption.If your equity is less than that, there's no problem, but your mortgage remains and you have to keep making the monthly payments.
Answer Applies to: Oregon
Replied: 6/10/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
It depends. If there is too much equity in your house (not likely in this market, but you never know), the trustee may want to sell it. If you business has allot of assets or accounts receivable that could be a problem. Every case is different, that is why it makes sense to consult with and use a lawyer. They know how to make sure you get the best outcome in your case.
Answer Applies to: California
Replied: 6/10/2011
Bird & VanDyke, Inc.
Bird & VanDyke, Inc. | David VanDyke
Bankruptcy laws allow you to keep up to a certain value in your assets. Many people with a business and homes keep these assets after filing. If you have a business It will be valued (usually by valuing the business assets). If you have employees this can complicate the process. You need to talk to a bk attorney who has experience with bks involving a business. I have successfully completed many bankruptcy cases involving business assets.
Answer Applies to: California
Replied: 6/10/2011
    Jackson White, PC
    Jackson White, PC | Spencer Hale
    You can keep your business. Depending on the value of the business, this may be the deciding factor on whether you file a 7 or a 13.
    Answer Applies to: Arizona
    Replied: 6/10/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    Those issues depend on whether there is equity in the house and if the business has any assets and is making a profit.
    Answer Applies to: Virginia
    Replied: 6/10/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    Depends on a number of factors: 1) Does the house have equity, and if so how much? 2) Is the business a saleable asset? 3) What are the exemption laws for your state? Without that info, can't really give an accurate answer.
    Answer Applies to: California
    Replied: 7/11/2013
    Brian Walker Law Firm, P.C.
    Brian Walker Law Firm, P.C. | Brian Walker
    People who file for bankruptcy who both work and on the business, are often able to keep their business. Whether or not they will be allowed to however depends upon their household income, and other factors such as the nature of the business and the types of equipment it has. A more specific answer would require a thorough review of your circumstances. If you have any further questions feel free to contact me.
    Answer Applies to: Washington
    Replied: 6/10/2011
    Lakelaw - Loop Bankruptcy
    Lakelaw - Loop Bankruptcy | David Leibowitz
    In chapter 7 bankruptcy, your non-exempt assets with value will be sold. Your business could be sold if someone would buy it. Of course, if your business is a corporation, its debts would have to be considered. If your business is a sole proprietorship, its assets will be sold by a chapter 7 trustee if value could be realized for the estate. In chapter 11 and chapter 13, your assets are not sold since you have the chance to reorganize.
    Answer Applies to: Illinois
    Replied: 6/10/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Some businesses can remain open after bankruptcy and some are closed. Keeping your house is an important issue in filing bankruptcy. It may be best to file a chapter 13 payment plan rather than a liquidation chapter 7. For all the considerations you should seek the advice of an attorney who is a certified specialist in bankruptcy law. Consult the State Bar for a listing of those attorneys in your area.
    Answer Applies to: California
    Replied: 6/9/2011
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    You should be able to keep your business.
    Answer Applies to: California
    Replied: 6/9/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Depends on the business and the chapter you file. Chapter 7 trustees have the authority to shut down businesses. But many businesses survive bankruptcy and you can always keep your business in a Chapter 13 if it at least breaks even.
    Answer Applies to: California
    Replied: 6/9/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Maybe yes, maybe no. You need to see a lawyer to figure that out. It depends on the chapter you file under, the assets/debts you and your business have, and whether or not it is incorporated.
    Answer Applies to: Georgia
    Replied: 6/9/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    It would depend on how much equity you have in the home and how much you have available in exemptions. As to the business, it depends on the value of the business and the amount of exemptions you have to protect the value of your business. Also, you might not be able to operate a business in a Chapter 7 case which is liquidation bankruptcy. You certainly need a local experienced bankruptcy attorney to represent you and you would be playing with fire and are probably going to get burned if you file without an attorney.
    Answer Applies to: California
    Replied: 6/9/2011
    Financial Relief Law Center
    Financial Relief Law Center | Mark Alonso
    That is a difficult question to answer based on the information provided but you may be able to keep the business and the house depending on such factors as the type of bankruptcy you file, if there are personal assets in the business, is there equity in the house,.... Consult with an attorney to evaluate your particular situation.
    Answer Applies to: California
    Replied: 6/9/2011
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