filing ch 7 & having very small biz

[No Gravy]

Hi Guys, There is a big difference in how you file. Most C7 BKs are Consumer. You can exempt a lot of your equip etc. under this. If you fit the means test, you can still do this one.

A business C7 is a choice IF your debts are 51% or higher in business. And chances are higher you have to close the business.

So that's where it is NOT one size fits all like NG says. You have choices.

Just checking...you know I meant the same as you did here, right? That there's isn't a "one size fits all" answer?

[BROKENN]

Yeah, I was quoting and agreeing with you because you found a great way to say it. Sorry if I didn't write it correctly.

Its such a confusing subject that I was also throwing in my two cents to help clarify.

[No Gravy]

Yeah, I was quoting and agreeing with you because you found a great way to say it. Sorry if I didn't write it correctly.

Its such a confusing subject that I was also throwing in my two cents to help clarify.

Heh, no prob...that's why I just wanted to check with ya

It *is* a confusing subject, and what could apply to one person's situation and business may not apply to another. Brick-n-mortar with inventory and a Corp or LLC, as opposed to a sole prop web-based biz....plus the different state's rules and all that.

It's why I've decided against filing pro se. I could if I had no other option...but I just found out I'm due some money in November, and I'm planning on using that to pay the attorney.

The foreclosure sale looks like it likely won't be scheduled until Feb-Mar '09, so I'll have a place to live until then. That's been my biggest fear, of being tossed on the streets in the middle of winter.

[BROKENN]

Yes, when its complicated I would recommend a lawyer. Good choice and I am glad you are getting to plan! That makes me happy for you!

[No Gravy]

Yes, when its complicated I would recommend a lawyer. Good choice and I am glad you are getting to plan! That makes me happy for you!

Thanks! I'm happy for me too...especially since I finally got paid yesterday from my new 2nd job for August. It got held up becuase of the CA budget crisis-thingie...

I have food in my frig and gas in my car. Anything beyond that is gravy

[rockyroad]

I listed my scenerio on a previous page...however, my biz debts are probably just about equal to my consumer debt...assuming that your house note counts as a consumer debt. I've heard conflicting information on this.
Less than 1k in consumer c/card debt as everything is paid in full monthly.
My DBA for the Sole Prop. is listed with a partner. Should I take my name off the DBA? File for a new one in his name only?
Sorry for all the questions. I haven't retained counsel yet and I know this biz stuff can get so confusing!

[epiphany]

Ok, went to the atty. and I think he probably wanted to laugh at my biz since it is so little and I have only so little inventory and profit. He said I could keep the name --that was the part I was worried about the most since I knew I don't have much assets in it but that my "brand and name was finally getting out there and I didn't want to have to use a different biz name. He said since it was so little and no high value he didn't see any problems with it. I felt reassured so hopefully this is true. Maybe it is not the same with a bigger biz that is sole prop.

You're fine. Your lawyer is correct.

I am in the exact same position. Sole prop of a very small business. Had to exempt inventory but it was covered easily.

In the scheme of BK, a sole prop business is considered personal...not a business...there is no difference. The courts see your business profit and business debt as personal, as if there is no business at all. You will not be forced to stop doing business.

You just need to make sure that you exempt any inventory that you have. You also need to make sure that the income you claim from that is the gross minus the expenses. Your IRS P & L statement shoud be proof enough of this.

Good luck,
ep

[No Gravy]

You're fine. Your lawyer is correct.

I am in the exact same position. Sole prop of a very small business. Had to exempt inventory but it was covered easily.

In the scheme of BK, a sole prop business is considered personal...not a business...there is no difference. The courts see your business profit and business debt as personal, as if there is no business at all. You will not be forced to stop doing business.

You just need to make sure that you exempt any inventory that you have. You also need to make sure that the income you claim from that is the gross minus the expenses. Your IRS P & L statement should be proof enough of this.

Good luck,
ep

Yahhhhhh, the voice of reason speaks! Ermmm....types.