Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

$5,000 Inventory?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • $5,000 Inventory?

    My husband owns a small company for glass / windows. We are claiming chapter 13 personally but writing off some business debt that we are personally liable for. We are really hoping that if we get rid of this debt and cut our expenses tremedously we can keep our doors open. However, we were told that we can keep $5,000 in the tools of the trade. What does that mean and who determines the values of our tools? Also, if the tools value over $5,000, can our creditor and just decide what he is going to take??

    I am new and just beginning this painful process. We are wanting to make sure we do this process the right way too.

    thanks

  • #2
    It is more than just tools of trade you need to consider. In your personal bankruptcy, your husband's entire business is considered an asset. He will need to value the business.

    How is the business formed (LLC, Corp, sole prop)? Read up on the Small Business section here in this forum.

    Yes, it does not seem right that if you file personally that the business is included, but it is as the business belongs to your husband. Make sure your attorney is familiar with and has worked with small business owners that are filing BK. Do NOT go to a mill attorney - as your as automatically is a little more complex since you own a business.

    Check out your A/R too. Anything that is due you as of the date of filing belongs to the Trustee. When you have a small business, timing for your filing is critical. Income earned after the filing date is yours.

    Naturally, you will have lots of questions. The first place to start is read some of the other experiences by small business owners and apply to your situation. Then come back and ask as many questions here as you can. When you meet with your attorney you can get all the details. It will help you find the right attorney if you ask the right questions.
    Filed CH 7 9/30/2008
    Discharged Jan 5, 2009! Closed Jan 18, 2009

    I am not an attorney. None of my advice is legal advice in any way..

    Comment


    • #3
      thank you so much for your response. We have picked out an attorney and I am just now preparing our initial packet and gathering all my questions. I will include the ones you mention above for sure. thank you so much, apprecitate your feedback.

      Comment


      • #4
        Originally posted by StartingOver08 View Post

        How is the business formed (LLC, Corp, sole prop)? Read up on the Small Business section here in this forum.
        You still need to answer this question. Makes a huge difference on the answers.
        All information contained in this post is for informational and amusement purposes only.
        Bankruptcy is a process, not an event.......

        Comment


        • #5
          LOL! Oops.. it is a S Corp. Do you have experience with this?

          Comment


          • #6
            Yes. Mine was an S corp. I ended up having to close the S corp when I filed but continued in the same business as a sole prop. Please note, that the liabilities with the S corp are still there but my personal liability was discharged in my personal BK. The creditors can't collect against the corp, but they can get a judgment. Most did not bother to pursue that avenue.

            I mention the above because part of the BK will be figuring out how you want to keep your business running or even if it is worth keeping the doors open.
            Your BK plan needs to include not only what you are discharging in your personal BK, but what will you do with the business liabilities and assets.

            Speak to your attorney to come up with your plan. Do you have liabilities just in the co name? Or are all of your co liabilities also personally guaranteed?

            Here are some addtional thoughts for your plan: http://www.bankrate.com/finance/debt...ankruptcy.aspx

            Some alternatives for you: Keep the business running and 'buy back' the business from the Trustee at a negotiated value. Or you might liquidate your inventory and pay off your business creditors and officially close the business prior to filing personal BK. Or you might consider changing the business from S corp A to S corp B - where you dump some debt but still have to buy out assets. This is something that takes specific knowledge of your debts and liabilities and the expertise of your attorney.
            Filed CH 7 9/30/2008
            Discharged Jan 5, 2009! Closed Jan 18, 2009

            I am not an attorney. None of my advice is legal advice in any way..

            Comment


            • #7
              Originally posted by jenbow View Post
              LOL! Oops.. it is a S Corp. Do you have experience with this?
              You could say something like that.

              Your S-Corp and everything that it owns will be an asset in your bk estate. There are no exemptions of any kind for your corporation. Any monies that are owed your corp are also part of the estate.

              Your trustee is going to want to sell your corp to someone, even if it is you.
              All information contained in this post is for informational and amusement purposes only.
              Bankruptcy is a process, not an event.......

              Comment


              • #8
                Great input.. thanks

                Our S-corp has expenses that are all personally guaranteed. Basically, trucks ($25,000) , a business line of credit ($100,000), and two business credit cards ($20,000). Plus we just found out that we owe $60,000 in payroll taxes (somehow our accountant missed 2007 - 2nd quarter).

                Our business has no real assets or inventory except my husbands experience and tools. We are still getting business but we feel the company has been managed very poorly (shame on us). If we were to get a fresh start and eliminate our debt we might be able to continue..

                My husband is 56 and really knows nothing else but how to install glass and windows. Companies such as his are not really hiring so his only way to earn a living is to try and restructure.

                We basically are eliminating all expenses that we possibly can, filing BK personally and then saying alot of prayers.



                We have had our initial consult with our attorney.. and now I have just submitted our packet. We are going to meet in about two weeks but before then I am trying to get an understanding of where we are at and also what questions to ask.

                I am going to ask the attorney about the buy back and also the changing of the scopr to another type.

                This forum has been great.

                Comment


                • #9
                  I'm sure you are aware the payroll taxes are non-dischargable.
                  Figure out with your accountant and attorney the best way to handle those taxes. Even if you decide to close the business (Corp A) and open up corp B, the taxes need to be paid. This might impact what you are doing with your BK.
                  Filed CH 7 9/30/2008
                  Discharged Jan 5, 2009! Closed Jan 18, 2009

                  I am not an attorney. None of my advice is legal advice in any way..

                  Comment


                  • #10
                    we know that the payroll taxes are not going away this is the final straw that is putting us in BK as we are just going downhill.. i hope after we meet with attorney our situation will be more clear

                    Comment


                    • #11
                      Originally posted by jenbow View Post
                      we know that the payroll taxes are not going away this is the final straw that is putting us in BK as we are just going downhill.. i hope after we meet with attorney our situation will be more clear
                      Did your accountant sign any of your checks.
                      Golden Jubilee was a year-long celebration held every 50 years in which all bondmen were freed, mortgaged lands were restored to the original owners, and land was left fallow: Lev. 25:8-17

                      Comment

                      Unconfigured Ad Widget

                      Collapse
                      Working...
                      X