Q: Sole-proprietor smallbusinessowner filing for bankruptcy expected liquidate personal assets (home) to pay business debt?
A: It's almost impossible to answer your question like this. You need to sit down with an experienced bankruptcy attorney in your area and spend some time going over your situation. You get to have some equity in a house is California but there are a lot of other considerations that require an in depth look at your situation.
A: I agree with my colleague. Consulting with an experienced bankruptcy attorney is critical in order to fully analyze your situation and to make sure that bankruptcy (presumably a chapter 7 is what you are considering), is the best option. Generally, if your business is a sole proprietorship and you file personal bankruptcy, it would include all personal and business debt as well as all personal and business assets. If there are assets (personal) that cannot be protected by claiming exemptions (talk to a bankruptcy attorney about this), then any assets sold by the Trustee resulting in distribution of money to creditors will include payment to personal and business assets. This is a very critical aspect of the bankruptcy analysis - see an attorney that specializes in Bankruptcy to get all information before filing.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
