a CT guy borrowed $150k (personally guaranteed) to start a landscaping company which has gone bust. he does not own a home and has no other significant debts. he did purchase about $90k worth of equiment (trucks). does he have to file a BK for both the business and personally? can he keep some of the trucks - CT does not seem to limit the "tools of the trade" exemption by dollar amount.
-
-
You are correct, the code, itself does not seem to have a dollar limit. Also, CT allows you to choose state or federal exemptions.
This is an area where you will want to get a lawyer who is familiar with how the exemption scheme works in practice.
If the business is bust, and can no longer operate, then I suspect the Tools of Trade exemption would not apply to the equipment because the equipment and vehicles are no longer "necessary for the operation of the enterprise."
On a side note, it is no likely the business, it self, needs to file bankruptcy. If the business is done, it is usually a rather simple process to shut it down and mitigate any risk of lawsuits. The owners WILL need to file BK because of the personally guaranteed debt.
Comment