Keeping business and persnal seperate

[larryg]

Does anyone know if you file for personal bankruptcy will they look at my business bank account and info? The business is a LLC. My attorney said I could file on personal and not the LLC but I didn't ask about what they would need to look at from the LLC. I don't want to call this attorney again until I decide when and if I really am going to file.
Most of the credit was used to start my business and to live on for the past year but it was all on personal credit cards. I am concerned that if I get behind on my credit card the bank will take the money out of my business account. And I'm afraid if I move my business bank account it will send up a red flag to the trustee and just drag everything out longer.

[keepmine]

With a business involved, you can bet the trustee will want to question you about assets,etc.

[jnjw]

Yes, I was just notified last week (about 1.5 weeks before our 341 which is this Friday), that the trustee has "reviewed" our case and determined that we are a business case. Mind you, I am self-employed, but I only make 15% of the household income here. I am not an LLC, don't have a business license, do not really keep track of anything (that is what I have an accountant for), just get 1099-d at the end of the year, and our trustee now wants a monthly report (several pages long) by the 15th of every single month (my first one being due at the 341 meeting), an income statement, deposit slips, AND any and all copies of bank statements of bank accounts that I have access to. The reporting is also to include any information about business assets (which I have none). I am to make "no cash transactions," yada, yada, yada, the list goes on and on.

So long story short, while you may file personal bk, which is what we did, I would imagine that your business will be looked at if you are generating an income from it. Just my .02.

[larryg]

I owe a friend some money for helping me with start up expenses and I'm afraid if the LLC pays this back before I file personal Chapter 13 the trustee will make my friend pay the money back or even worse consider this fraud. My attorney said I could file 13, keep my house and not involve the business because it is a LLC. After reading many of the posts in this forum I don't think it is as simple as the lawyer made it sound.
Does anyone have any experience in dealing with an LLC and only filing personal BK

[HHM]

If you are filing chapter 13, it is as easy as the lawyer makes it sound. It is in chapter 7 where assets and money owed to friends and relatives becomes an issue.

[larryg]

Thanks,
My business is just now starting to show a small profit. It now pays for itself and offers me a small salary. (I'll have to get a part time job to pay the 13) I've put everthing into this business and have lived on CC for the last year and I really don't want to lose the business when it is just starting to succeed.
I know this sounds crazy but I found my self laid off at the age of 55 and unemployable because of my age. Starting my own business was the best option at the time.