Legal Question in Bankruptcy in Tennessee

I own a small pest control business in Chattanooga tn. I have overwhelming debt both business and personal which i have guaranteed. My business has no assets except my customers which after talking to some of my competition has no value unless I sign a non-compete which I can't do and stay in the pest business which I intend to do. If I file a chapter 7 bankruptcy will I lose my business?


Asked on 8/28/10, 2:42 pm

1 Answer from Attorneys
Dan Scott Scott Law Group, PC

If your business has no assets as you suggest the Chapter 7 Trustee has nothing to gain by attempting to take it over. Remember however that contracts for services have value. If you have annual contracts that could be sold to someone else (like a competitor) the trustee may believe these have value.

Note that you have a $10,000 personal property exemption (not real estate) that you can use to keep unencumbered personal property.

Be sure to be candid with whatever bankruptcy attorney you see. That attorney will be able to give you the best advice on this.

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Answered on 9/03/10, 2:03 am


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