Because my business income has dropped and I don't fore see it getting back up to where it used to be (economy and increased competition) it appears I will have to declare bankruptcy. I'm not late on a single thing yet so have (I hope) a little time. I have a restaurant as a sole propriertership, everything is leased, the only thing that could be considered an asset would be the stock I have on hand at any given moment. I do not want to have to drag my vendors into this mess. If I incorporate to keep them out of the loop (I assume I would have to list them as creditors) how long would I need to wait to file. It can be easily proven that it was not done to hide assets as there are none. I want desperatly to salvage something out of this mess. Thoughts? Ideas? Suggestions; I'm wide open to anything at this point.
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The future is unwritten. J.S. -
In the grand scheme of things, it won't matter whether you incorporate. Since you would be a "close corporation" (i.e. you are the only owner), the trustee can just as easily take control of the shares and thus the assets of the business anyway.
Talk to a few BK attorney's, there are special exemptions for assets related to your ability to generate income etc. But you may need to do some serious leg work to find the "right" attorney, as many BK attorneys are unfamiliar with business issues related to BK.
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