Legal Question in Bankruptcy in California

Personal bankruptcy

I am planning on filing for Bankruptcy, I was laid off (mortgage industry) more than a year ago and have not been able to find work. I have started my own business and I wanted to know if my business will be adversely affected by the BK ie: Business bank account as that is how I pay the bills for my business.


Asked on 6/13/08, 2:55 am

1 Answer from Attorneys
Robert Mccoy Law Office Of Robert McCoy

Re: Personal bankruptcy

It depends. If you file a chapter 7, some trustees will not allow you to be in business while in bankruptcy. However, if you have no employees, and no major business assets, you probably could still operate a business while in chapter 7. Your business bank accout will be considered an asset of your estate, so you would need to have a minimal amount in that account at the time you file.

Also, if you were to file a Chapter 13, then you could stay in business even with employees, assets and large bank accounts.

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Answered on 6/13/08, 5:40 pm


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