Legal Question in Bankruptcy in California

New Small Business Owner - Can I file Ch 7 & still keep business?

I started a Legal Document Prep service Last year. I've had the business for about 15 months now. I've been taking out cash loans (on credit cards) to pay the expenses... then I took more loans out to pay those loans. I'm drowning in paying off the startup and ongoing expenses. The business is slowly growing and covers itself in rent, utilities. I've been paying out of pocket for all other expenses including living expenses. The business is a DBA meaning the business and myself are one and the same.

Questions: 1) If I declare Ch7, can I still keep the business since this is my only source of income? 2) IRA's are sheltered?... what about savings bonds?, 3) necessary advertising is being charged monthly on credit cards automatically - do I need to have the cards not have any charges for 90 days in order to qualify?, 4) What if I took out another $10k to buy myself another 2-3 months? 5) Pros/Cons of filing now as opposed to when the new BK laws go into effect?, 6) Is there someone in the San Fernando Valley area of Los Angeles that might be able to help?

Thanks in advnace.


Asked on 7/21/05, 7:18 pm

2 Answers from Attorneys
Khachik Akhkashian Diamond, Burt & AKhkashian, LLP

Re: New Small Business Owner - Can I file Ch 7 & still keep business?

I am not trying to shortchange any answer, but it would voluminous to write an answer for your question.

Multipart questions are better answere, efficiently, for attorneys over the phone.

At any rate, your business assets may very well be exposed, assuming, it is unincoporated. However, even if it is a separate entity, it still be at risk.

As to the other questions, it would depnd which set of exemptions that you are applying.

Any rate, if you wish for addition answers please do not hesitate to call.

Khach "Catch" Akhkashian

(213) 384-2220

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Answered on 7/22/05, 12:09 pm
John D. Williams Law Offices of John D. Williams

Re: New Small Business Owner - Can I file Ch 7 & still keep business?

It depends on a review of all of your assets and debts and a determination of what exemptions can be applied.

If you would like a free initial consultation, please call me at (818) 991-6664. I have over twenty-five years experience.

Good luck and thank you for your inquiry.

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Answered on 7/23/05, 4:14 pm


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