I’m filing for bankruptcy in November, but I’m wondering if it’s okay to start a new business or keep working in the same industry now or during the process. Anyone know how this works?
I think it depends on the type of bankruptcy you’re filing. Chapter 7 and Chapter 13 work differently. Do you know which one you’re doing?
Hartley said:
I think it depends on the type of bankruptcy you’re filing. Chapter 7 and Chapter 13 work differently. Do you know which one you’re doing?
Yeah, I’m thinking it’ll be Chapter 7. Not 100% sure yet though.
@Hadi
With Chapter 7, income from a new business might become part of the bankruptcy estate. Probably worth checking with a lawyer just in case.
Starting a business during bankruptcy can complicate things. You’ll have to report any new income or assets to the court.
Zayden said:
Starting a business during bankruptcy can complicate things. You’ll have to report any new income or assets to the court.
Got it. I guess the court could see it as me having more money than I actually do?
@Hadi
Exactly. Creditors might raise questions, and it could make the process tougher.
FYI, any income you make before filing could be included in the bankruptcy estate. Just something to keep in mind.
Winter said:
FYI, any income you make before filing could be included in the bankruptcy estate. Just something to keep in mind.
Wait, what does ‘bankruptcy estate’ mean?
Winter said:
FYI, any income you make before filing could be included in the bankruptcy estate. Just something to keep in mind.
Wait, what does ‘bankruptcy estate’ mean?
It’s basically everything you own and earn that can be used to pay your debts. Stuff after filing usually isn’t included though.
If you’re thinking about tools or assets for a new business, check if they qualify for trade exemptions. It might save you some trouble.
Clovis said:
If you’re thinking about tools or assets for a new business, check if they qualify for trade exemptions. It might save you some trouble.
What are trade exemptions?
Clovis said:
If you’re thinking about tools or assets for a new business, check if they qualify for trade exemptions. It might save you some trouble.
What are trade exemptions?
It’s a legal thing where you might be allowed to keep tools or equipment needed for your job or business.
Honestly, talk to a local bankruptcy lawyer. They’ll know exactly how your state handles this stuff.
Nico said:
Honestly, talk to a local bankruptcy lawyer. They’ll know exactly how your state handles this stuff.
Yeah, I should probably do that. Any suggestions on where to find one?