I am certainly going to be filing for Chapter 7 in the next year or so and I have a quetion about my Very small business. I have only 3-4 customers, and it grosses maybe $30/month, with expenses $20, profitting $10/month. It is a formal LLC, however. My question is should I shut this down before the bankrupcy to avoid complicating the bankrupcy? I'm not terribly worried about loosing it, just dont want the bankrupcy to be more complicated then it needs to be.
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Im in the same positon and I am planning to file the corporate dissolution forms with the state. However, first I need to renconcile as many outstanding payables, receivables and inventory issues before filing because I do not want to surrender them to the trustee (self liquidation is better). Its not easy closing a large corporation! -
Sounds like you're in more of a mess then me. I am the sole propriator of the LLC. So it's as easy as filing the dissolution, telling the customers to move on, and cancelling service with my service provider. It has no assets or inventory. I cant imagine why it would even be considered a worthy asset to sell to pay back debts. I guess what I'm wondering is can I keep it and it wont cause me much trouble during bankrupcy? And be able to keep it after? If I'm gonna loose it anyway, or make the bankrupcy more complicated, then I will just shut it down first.Comment
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...well im not an expert on this but my understanding is that you can sometimes keep your business while filing chapter 7 bk. you just have to prove your business income and assets are low enough to stay within your state or federal exemptions. keep good business records because they will probably want 2 years of business returns, p&l statements and such in addition to your personal income and assets. in your situation as you explain it, it doesnt sound like you will have a problem. the trustee is looking for assets and there is not enough there for him/her to go after.Comment
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