We currently own a business and are considering Ch. 7. If I do file, will my business have to be included as an asset? It is currently a sole prop. Should we consider incorporating prior to filing, to keep the business out of it, or will this not mean a thing?
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What kind of business are we talking about? And what business assets are you concerned about?
As a sole prop., yes, the business will be involved because you are the owner of all the business assets, and thereby must list those assets as personal assets on your BK and figure out a way to exempt those assets.
Incorporating in light of an imminent chapter 7 could be problematic and you will need to see a lawyer about that. Although certain amounts of pre-BK planning are allowed, incorporating just before a chapter 7 could simply look like an illicit transfer of assets.
In any event, when ever a business is involved with a BK, you MUST get a competent lawyer.
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