Question About Chap. 7 And Home Base Business.

Question:
I just got a business licenses today for my homebased web design company. I'm not seeing a profit (for that matter 99% of my work is volunteer), but I got the license for tax purposes and the fact that I'm not working with state and local govs that want everything on the up & up. Well I got to thinking: what will happen to my business if I have to file a Chap. 7 bankruptcy on my unsecured Mastercard and my wife's/my medical bills? The business owes no one and I have no outstanding debts or for that matter I don't really have a lot of "equipment" a monitor and CPU, scanner and cheap $40 printer all set up in my wife and my bedroom. So my question is: well there be any effect on the business (so long as it stay debt free). And can the doc's come back and try to make a grab for it or make me auction off anything?

Answer:
If the business is incorporated (something I strongly recommend), and the assets are owned by the corporation in its name, your only asset related to the business is your stock...which probably has little or no value. If the business is in your own name, the business assets are treated as personal assets, and should be exempted as with other personal property. Normally, this is a minimal amount.





Categories