Will I lose my small business in a chapter 7 filing? 23 Answers as of August 25, 2011

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?

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Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
if not exempted, your assets will be liquidated by the trustee to pay your creditors.
Answer Applies to: Washington
Replied: 8/25/2011
Breckenridge and Walton
Breckenridge and Walton | Alan D. Walton
You could if it has value.
Answer Applies to: Michigan
Replied: 7/22/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
If it has no value, you will not likely lose it in a Chapter 7 case.
Answer Applies to: California
Replied: 7/18/2011
Tucker Legal Clinic
Tucker Legal Clinic | Samuel Tucker
Your interest in the LLC would be included in your bankruptcy estate. Just form another.
Answer Applies to: Mississippi
Replied: 7/18/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
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.
Answer Applies to: California
Replied: 7/18/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Depends on business and your trustee. If business is insolvent and you have no assets or employees, I don't see you losing it, but then again I question why you would want to have a business like this. Thank you,
    Answer Applies to: California
    Replied: 7/18/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    It depends more on whether or not the LLC has assets that are worth more than you have in exemption. I would highly recommend that you see an attorney. Ch 7 is not a good do it yourself project for anyone, but I would never recommend it when there is a business involved!
    Answer Applies to: Michigan
    Replied: 7/18/2011
    Law Office of Jackie Robert Geller
    Law Office of Jackie Robert Geller | Jackie Robert Geller
    Depends on whether your interest in the LLC has any value. Talk to an attorney right away.
    Answer Applies to: California
    Replied: 7/18/2011
    Guardian Law Group PLLC
    Guardian Law Group PLLC | C. David Hester
    No. You will need to disclose it in your filing but you will not lose it.
    Answer Applies to: Utah
    Replied: 7/18/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    It depends on what your business owns. If you business has valuable assets in excess of business debt, the business might be taken over by the Trusteee. If the business has no assets, it will not be affected by your personal bankruptcy.
    Answer Applies to: Colorado
    Replied: 7/18/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    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.
    Answer Applies to: California
    Replied: 7/18/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    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.
    Answer Applies to: Virginia
    Replied: 7/18/2011
    Law Offices of Iman Abouelazm, P.A.
    Law Offices of Iman Abouelazm, P.A. | Iman I. Abouelazm
    The Bankruptcy Court considers your business an asset. Depending on the value of your business, the Trustee may want to seize your business. However, if your business has no assets and little income, Trustee may abandon any interest in your business if it will not prove to be financially beneficial to the bankrutpcy estate.
    Answer Applies to: Florida
    Replied: 7/16/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    If it does not file, and it owns very little...you can keep it.
    Answer Applies to: California
    Replied: 7/16/2011
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
    If it has no assets, probably not.
    Answer Applies to: California
    Replied: 7/16/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Depends on what assets the LLC has (desks, computers, equipment, etc. or goodwill) and if you have exemptions sufficient to cover the fair market value. If it has no value, or exemptions can cover the value, then the trustee would not take the business.
    Answer Applies to: California
    Replied: 7/16/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    Is it saleable, or it it more in the nature of a personal service, whereby there really isn't anything to sell? To the extent it can be sold, depending on it's value, it might be at risk. Need more info to answer the question accurately.
    Answer Applies to: California
    Replied: 7/16/2011
    Jackson White, PC
    Jackson White, PC | 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.
    Answer Applies to: Arizona
    Replied: 7/16/2011
    Ashman Law Office
    Ashman Law Office | 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.
    Answer Applies to: Georgia
    Replied: 7/16/2011
    Theodore N. Stapleton, PC
    Theodore N. Stapleton, PC | Theodore N. Stapleton
    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.
    Answer Applies to: Georgia
    Replied: 7/16/2011
    Apple Law Firm PLLC
    Apple Law Firm PLLC | David Goldman
    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
    Answer Applies to: Florida
    Replied: 7/16/2011
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