Legal Question in Bankruptcy in Illinois

After 2 years of unemployment, exhausted savings and no income, I will need to file Chapter 7. I want to start my business (sole prop). What are the ramifications for starting a business:

1.) before filing?

2.) after filing, but before discharge?

3.) after discharge?

My business is that of a Virtual Assistant (secretarial / special projects/business services).


Asked on 7/08/10, 10:38 pm

1 Answer from Attorneys
Caroline Palmer Law firm of Caroline Palmer

1. If you start a business before you file then as a sole business owner your business assets could be used to pay off your debts in bankruptcy.

2. It is the same if you start after filing but before discharge. In addition, filing for bankruptcy will show up on your credit report and prevent you from getting a loan.

3. Bankruptcy stays on your credit report for 10 years and will prevent you from getting credit.

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Answered on 7/09/10, 4:21 am


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