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  1. #1
    Join Date
    Jan 2006
    Posts
    1

    Default Keeping Personal and Business Assets After Bankruptcy

    Hi,

    I am not sure if Bankrupcy is the right thing for me in my situation, or if it is even possible but here is my situation in a nutshell. I am 23 years old and I was the former CEO of dotcom/brick and mortor Corporation in Baltimore, MD. I was one of three founders of the Corporation, we had 9 employees, and were in business for 3 years before our fall in December 2005 (great timing).

    Everything was going great for the first 2 1/2 years until we tried to expand rapidly, I have 6 credit cards in the Company name but my SSN which I used to pay for software, servers, employees at times, and other operational expenses.

    To make a long story short, we aquired a company that had 12 locations, but before the paper work was finished we were backstabbed, and left with nothing but debt by the former owner of that company. All of our other operations had slowly come to a hault in order for us to prepare for the merger.

    I now have about 80k worth of debt on my head, $25k in credit card debt, 2 car loans and 2 smaller business loans $47k (with my SSN, no banks would accept our Tax ID only had to have a personal guarantee). The rest of the debt is owed in medical bills, and utilities, rent, etc.

    The only way I have been getting by is the assets I still hold on to : stocks, domain names, webpages, ebay sales, affiliate accounts. This generates me about $3k a month currently. The problem is my expenses are now out of control and well over $5k a month.

    If I file for Bankrupcy is there anyway I can hold on to my assets? Some are in my old corporations Tax ID (it is being dissolved in a few weeks) Some are under my LLCs Tax ID, and some are under my personal SSN.

    I hold about 100 domain names, that appraised are worth about 50k or so but they are hard to liquidate, stocks that have dropped down to basically nothing about $1500 or so, two cars (one is mine, other my gfs). And some inventory left over.

    I cannot take the stress, creditors, sleepless nights anymore. I guess I am seeking some direction here more than answers to my problems.

    Any suggestions? Can I hold onto my assets? Does the Corporation and my LLC (newly formed) go bankrupt if I personally declare it? Any help here would be great, I do not know what to do going forward here...THANKS

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Declaring Bankruptcy

    It isn't clear how the assets are held - that is, by your business or by you individually. If the assets are held by you as an individual, you can resolve the entire matter through your own bankruptcy. If you opt for a Chapter 13 bankruptcy (or are restricted to Chapter 13 by the Bankruptcy Reform Act) you would typically have your debts reduced and restructured into a multi-year payoff plan based upon your means. Certain of your assets might be subject to liquidation by virtue of your holdings exceeding your exemptions, or by virtue of their being collateral for a secured debt. A bankruptcy lawyer can guide you through your exemptions, and describe the type of plan you might end up having.

    If the debt is primarily personal to you, but the assets are held by the LLC, your personal bankruptcy would alleviate you of responsibility for the debt (beyond any payoff plan ordered under Chapter 13), but the LLC would continue to owe the debts (and own the assets). You could have a separate bankruptcy proceeding for the LLC, or you could wind it down, liquidate its assets to pay off its debts, and walk away from it. If this is the case you would probably want to discuss your options with a lawyer who handles business bankruptcies, and to form a strategy consistent with the law.

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