Business items and Bankruptcy?

[DaleM]

I am a Photographer and Computer Network Administrator/Consultant.

Photography makes up about 1/8th my total income for this year. Computer consulting is my primary income.

I have purchased tools for both businesses over the past year:
-Laptop (used in photography and consulting).
-a camera
-a lens

As with all items like these they are worth about 50% what I paid for them and would equal less than 1/5 my overall debt.

If these are tools I have to give up as part of the process I want to be prepared for it. I have absolutely no problem giving these up, though, not having a computer would make it awefully difficult to find work - I have been unemployed for two months and thus resulting in Bankruptcy.

Please advise.

[SinkingFast]

Will you be using State or Federal Exemptions? If State, what State? Did you move in the last 2 years from one State to another. If so, what's your old home State?

Many States have an Exemption for Tools of the Trade that is seperate from Household Goods. You might be able to cover your business items completely under the Tools of the Trade Exemption.

Remember when valuing your items, use yard or garage sale, and second hand store pricing. On the Goodwill Auction website, fully functional computers, laptos even, can go for $100. Take your camera and lens to a camera dealer. Ask how much they'd be willing to pay you cash if you were to sell to them.

[DaleM]

Moved from Michigan to Illinois 6 moonths ago.

[SinkingFast]

Under New Law, you'll have to use Michigan BK Exemptions.

You'll be allowed $3K for Household Goods and up to $2K for Tools of the Trade. MI BK Exemptions are explained at this website:

http://www.totalbankruptcy.com/state...an_summary.htm