New business after filing

[thx4help]

Hello,

I have a question about starting a new business after filing for BK.

I am a life long entrepreneur, have not worked for a boss since I was about 19. I start a lot of businesses, most of them never take off or quickly fail, a few end up successful, but overall I've done good enough for a decent living over time.

Due to a divorce and the economy, things have not worked out very good over last couple of years, so I will be filing BK. I have not been paying my creditors for 1 year now. I own an investment property that is in foreclosure right now, and a primary residence that is up to date on payments. And a car that is $15k upside down and has the repo man chasing it.

My question is, since doing business is what I am most comfortable with and really the only thing I know how to do, I can not imagine doing anything else. I don't have any money making businesses right now due to a dragged out divorce, but a head full of ideas. Am I allowed to start a new business after filing for BK? Can I do it right away after filing for BK or am I required to wait until after the case is discharged? Right now I am helping in my friends business and I'm getting a very small amount of cash from him, and also I'm getting the rent payment from my tennant, so together it is enough to survive. After I file for BK though the rent will have to end, so the only way for me to make a living would be to start a new business.

Thank you for your input.

[StartingOver08]

You can start a new business. You may have an issue coming up with capital to fund it - but you can start one after you file. You might want to wait until after your 341 for sure. You may even consider waiting until you get your discharge, which in a 7 is usually only 3 mths from the filing date.

[thx4help]

Thanks StartingOver08.

Yes, that's what I meant, can I start it before the discharge or before even the 341. Are there any specific rules when it comes to that? Like if I start it right after 341, and then my case turns out to be an asset case (which I think it will because I own a house that I will be giving up and it has some equity) and that drags the BK longer than the 3 mos, are there legal ways/reasons the trustee can try to go after my new business?

A follow up question, how long will I be allowed to stay in the house if I'm giving it up and it will be paid up to date as of the filing? Will it be just like a foreclosure (8-12 mos) or will I have to vacate shortly after filing?

Thanks.

[StartingOver08]

Where are you located (State only)?

Are you sure you have equity in your home? How did you determine the current market value?

The length of time you can stay in your home when you are surrendering it to the Trustee varies - even within the same district. It depends upon your Trustee and how good an attorney you have retained. In our district, S. Fl I am still in my home that I have surrendered in my BK. My attorney advised me to wait until the foreclosure sale.
However, others in my district with a different attorney and a different trustee had to move out of the home within 30 days of the 341. YMMV.

[thx4help]

I am in Illinois.