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  1. #1
    Join Date
    Aug 2017
    Posts
    11

    Default Urgent: in Chapter 7 Bankruptcy, Can They Take From

    My question involves bankruptcy in the state of: CALIFORNIA

    Dear Friends/Attorneys:

    I'm going to have to file for a Chapter 7 bankruptcy soon.

    Our business had a sudden downturn and despite putting my own money in, it went into the red over $1 million.

    My question is I have another corporation - completely separate from my personal assets that a group of investors have invested in.

    Can the creditors go after this separate corporation in a different state? Do I even have to list this corporation?

    Everything is legit - I'm not trying to evade anything.

    Many thanks for your help and I'll PAY IT FORWARD!

  2. #2
    Join Date
    Mar 2013
    Posts
    17,210

    Default Re: Urgent: in Chapter 7 Bankruptcy, Can They Take From

    Consult a bankruptcy attorney. This is not a DIY project. You own shares in the corporation, there may a risk if you don't get it right.

  3. #3
    Join Date
    Oct 2014
    Posts
    7,425

    Default Re: Urgent: in Chapter 7 Bankruptcy, Can They Take From

    Quote Quoting legalminute
    View Post
    My question involves bankruptcy in the state of: CALIFORNIA
    Can the creditors go after this separate corporation in a different state? Do I even have to list this corporation?

    Everything is legit - I'm not trying to evade anything.
    The stock you own in the corporation is an asset of yours. You must list that stock in your asset disclosures in the bankruptcy and the stock will be an asset that the trustee may take to satisfy your creditors, if it has enough value to make that worth doing and assuming you can't cover it with any bankruptcy exemption. You really need to see a bankruptcy attorney for help with this. With the kind of debt you are looking at you want to make sure you get the bankruptcy done right.

    If these debts are going to be from investors to some kind of business or investment plan you promoted then there is the prospect that they'll sue you for fraud if they feel you mislead them. That is not unusual when investors in such schemes lose their money. If they successfully sue you alleging fraud you may find that what you owe them is not dischargeable in bankruptcy. So you need to get the input of a bankruptcy lawyer before you file to go over all the possibilities and decide what the best course of action will be.


  4. #4
    Join Date
    Jul 2018
    Posts
    1,720

    Default Re: Urgent: in Chapter 7 Bankruptcy, Can They Take From

    Quote Quoting legalminute
    View Post
    My question is I have another corporation - completely separate from my personal assets that a group of investors have invested in.

    Can the creditors go after this separate corporation in a different state? Do I even have to list this corporation?
    Shares in the corporation that you own are an asset and, as such, must be disclosed in your bankruptcy schedules. The bankruptcy trustee will determine whether those shares have value that may benefit the bankruptcy estate or the trustee may release the shares back to you. Your creditors can "go after" this corporation if they believe you have hidden assets. You need to discuss this with your BK attorney.

  5. #5
    Join Date
    Aug 2019
    Posts
    14

    Default Re: Urgent: in Chapter 7 Bankruptcy, Can They Take From

    Quote Quoting adjusterjack
    View Post
    Consult a bankruptcy attorney. This is not a DIY project. You own shares in the corporation, there may a risk if you don't get it right.
    Our business had a sudden downturn and despite putting my own money in, it went into the red over $1 million.

    Quote Quoting DENIMKATY
    View Post
    Our business had a sudden Sarkari Result Pnr Status 192.168.l.l downturn and despite putting my own money in, it went into the red over $1 million.
    Our business had a sudden downturn and despite putting my own money in, it went into the red over $1 million.

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