Legal Question in Bankruptcy in California

Re: Filing Chapter 7 Peronal and owning a Corporation

The answers depend on how much in assets you have, and the amount of money you owe.

The corporation is a separate entity, but you own the shares of stock as your personal asset. If it's not doing business now, and hasn't, it likely isn't worth much and probably is covered by an exemption and you'll be able to keep it. Talk with a bankruptcy attorney to find out your options and how they'd affect you--these answers can only come once the attorney knows exactly what you have.

Re: Filing Chapter 7 Peronal and owning a Corporation

Your interest in the corporation is an asset and as such must be scheduled and hopefully exempted. It is probably fully exempt if there are no assets and it's not really doing business. If you'd like a free phone consultation, please visit my webpage at http://www.bklaw.com/consult.html and then contact me to schedule a time. I'll be happy to go over your situation and answer your questions.

Regards,

Mark

Re: Filing Chapter 7 Peronal and owning a Corporation

The corporation is considered a separate person in the eyes of the law. Your interest would be the value of your shares, and not necessarily the assets (or non-assets) of the corporation. If the corporation has not yet done business and has no assets, it doesn't seem that there'd be much to worry about. As to whether the corporation can do business in the future, that depends on your and your employees' abilities to make a go of it. Feel free to call me on Monday if you wish to discuss this further. (310) 858-9771.

Re: Filing Chapter 7 Peronal and owning a Corporation

Filing a Chapter 7 CAN have an effect on your corporation. Although it sounds as if you may be able to exempt your interest in the corporation, much will depend on the exact details. Please feel free to call 1(800)675-1005 to arrange a free consultation to go over all the details of both your bankruptcy and your corporation.