Q: Is it possible to still have my corporation as self employed if I file a chapter 7 on the personal side?
I'm a owner operator truck driver and debt has piled up. I'm roughly at $25,000 on credit cards and other obligations has caused me to go under water quite a bit.
I'm 2 years in with my corporation self employed, and both years of tax returns are showing $30k or less after write offs.
Is it possible to still keep the CA corporation with doing the chapter 7?
Thanks
A: I am unclear as to what you are considering and why. Personal chapter 7 or corporate? Both represent issues that can only be addressed with more information from you. I urge you to contact a bankruptcy attorney to discuss these options and issues. Several of us offer a no charge consultation during which you can get more specific information.
A: Yes, you can keep your Corporation while you go through an individual Chapter 7. My understanding is that you own 100% of the shares of your Corporation. You can apply an exemption to the value of your shares to protect that asset. The value of your shares in your Corporation is calculated from the total assets minus the total debts. You should consult with an experienced bankruptcy attorney regarding all of your assets, debts, income, expenses, transfers, and recent debt payments as well as the value of your Corporation prior to proceeding with your individual Chapter 7 case.
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