Legal Question in Bankruptcy in California

Bankruptcy

I am close to bankruptcy. An issue is two cars. I ''have'' a Nevada ''C'' Corporation in which I am a stockholder -- but the the majority stockholder. The two cars were purchased by the corp, have been services by the corp, are deducted on corp tax returns. But Registered in my name in order to get personal insurance rates. Would they be exempt from California BK?


Asked on 1/10/07, 4:26 pm

1 Answer from Attorneys
KATHIE SIMMONS KATHIE SIMMONS

Re: Bankruptcy

There are very few people that can handle their own BK and you are not one of them if you have a corporation. Are you meaning that you are NOT the majority stockholder? If you don't "own" these cars then you shouldn't have them registered in your name. The corporation may be defrauding the insurance company and that is not a good place to begin if you are filing for BK. If the corporation owns the cars my next question would be "How much are your shares of the corporation worth?". Most attorneys offer an initial consultation free, I know I do, and you can go over the basics. Often the client will decide to make some changes in their financial affairs before filing. In your case you may want to change how title to these cars are held.

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Answered on 1/10/07, 4:56 pm


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