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Filing Bk with a C Corp Business

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    #16
    Originally posted by justbroke View Post
    Your status, as a married couple, may be a factor since California is a community property State. If your divorce is final, or you have a "legal" separation, that may be different. You should definitely seek a divorce and/or bankruptcy/asset protection attorney's advice. I don't live in a community property State so I don't know the affects of using, potentially, marital funds to start a business. Still seems too sticky to me, but I'm not the expert. If it were me, and speaking only as a business person, I would put distance between the marriage, community property, marital funds, or any other commingling.

    Who holds the lease on the storefront? Is it the corp or a personal guarantee?
    I would use my own funds to start the business. I did my own taxes this year, and put myself as single, she claimed our children and put herself as head of household. We are living in separate homes, I am assuming that would be considered legally separated, but not sure?

    I hold the lease on the storefront, and it is personal guaranteed. That is why I don't want to let go of the lease, it will affect my credit and I am almost done with my chapter 13. On top of that, I will loose the deposit, which is 18k.

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      #17
      Originally posted by huffydogg View Post
      I would use my own funds to start the business. I did my own taxes this year, and put myself as single, she claimed our children and put herself as head of household. We are living in separate homes, I am assuming that would be considered legally separated, but not sure?
      No. You need to go to court to be legally separated. You probably should have filed your taxes as married filing separately.

      Originally posted by huffydogg View Post
      I hold the lease on the storefront, and it is personal guaranteed. That is why I don't want to let go of the lease, it will affect my credit and I am almost done with my chapter 13. On top of that, I will loose the deposit, which is 18k.
      You really need to at least talk to your BK attorney about all of this. Probably best to talk to a corporate attorney about potential successor liabilty regarding the corporation as you probably do have a community property interest in it. And, if you don't think you and your wife are going to reconcile, I'd consult a divorce attorney as well. Your wife probably has a community property interest in that lease and the deposit. The sooner you have a court order regarding division of property, the better.

      [What is community property depends on whether it was acquired before or after marriage and whether it was acquired with community property or separate property assets]
      LadyInTheRed is in the black!
      Filed Chap 13 April 2010. Discharged May 2015.
      $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

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        #18
        Originally posted by LadyInTheRed View Post

        You really need to at least talk to your BK attorney about all of this. Probably best to talk to a corporate attorney about potential successor liabilty regarding the corporation as you probably do have a community property interest in it. And, if you don't think you and your wife are going to reconcile, I'd consult a divorce attorney as well. Your wife probably has a community property interest in that lease and the deposit. The sooner you have a court order regarding division of property, the better.

        [What is community property depends on whether it was acquired before or after marriage and whether it was acquired with community property or separate property assets]
        Will I run into any problems if after my soon to be ex-wife closes the business, my brother opens a new business at the same location? He would be taking over the lease and sell similar items, and the name of the business, telephone number, etc. would all be different.

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          #19
          up

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            #20
            Originally posted by huffydogg View Post
            Will I run into any problems if after my soon to be ex-wife closes the business, my brother opens a new business at the same location? He would be taking over the lease and sell similar items, and the name of the business, telephone number, etc. would all be different.
            That is typically not an issue, but if there are any assets of the prior business used in that "new" business, you'll need to deal with that.
            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
            Status: (Auto) Discharged and Closed! 5/10
            Visit My BKForum Blog: justbroke's Blog

            I am not an attorney. Any advice provided is not legal advice.

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              #21
              Ok, thanks!

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