Legal Question in Bankruptcy in West Virginia

Chapter 7 and business assets

I am an independant contractor and I need a good reliabile vehicle to travel since 90% of my miles are for business use. If I file for chapter 7 bankruptcy can I do a subchapter S or LLC for my busness and transfer my vehicle to the assets of company and protect it from my personal bankruptcy? Is there anything else I can do to save my vehicle since the allowable is only 2500. and the vehicle is worth more then that.


Asked on 4/11/04, 9:35 pm

2 Answers from Attorneys
Rodney Berry Berry, Kessler, Crutchfield and Taylor

Re: Chapter 7 and business assets

You can not transfer assets in contemplation of bankruptcy. If you owe money on the truck, it is probably not worth more than $2500 over what you owe against it. If you have not exhausted your homestead exemption, you can use any ununsed portion to apply toward the truck. I hope that you are not trying to do this by yourself.

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Answered on 4/12/04, 9:00 am
Thomas Zimmerman Zimmerman Law Office

Re: Chapter 7 and business assets

A transfer could be dangerous because you can lose your exemption amount. You are permitted to use your wild card exemption, including the unused portion of your real estate exemption in West Virginia. Lastly, if Chapter 7 is not a good alternative, Chapter 13 may work as long as you make payments that equal or exceed the amount of excess equity.

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Answered on 4/12/04, 2:03 pm


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