Elawyers Elawyers
Virginia| Change
Asked in San Francisco, CA Mar. 23, 2020 ,  5 answers Visitors: 21
If i file bankruptcy due to medical bills, will i have to close my small business?

5 Answers

Anonymous
Reply

Posted on / Mar. 25, 2020 21:20:05

Did you know that, as a result of the Coronavirus pandemic, you can enroll in Covered California right now. Even if you thought you could not afford coverage before, check again, talk to a Covered California agent. If you have a modest income from your business which is too high to qualify for Medi-Cal, see if you can enroll in a "Silver" plan through Covered California. Please check into this and get yourself covered! Don't "put the cart before the horse" and assume that the only option is to file a bankruptcy case!

Anonymous
Reply

Posted on / Mar. 24, 2020 20:19:21

Based on information provided, may/not be possible to file C& or C13 BK, retain all assets, eliminate all debt. Devil in details.
Important moving parts include, not limited to:
-BK exemptions available to you;
-value of exemptions avaiable to you;
-liquidation value of business, inventory, equipment, receivables;
-pre-BK planning options
Consult BK counsel, review all missing information, accept advice regarding BK and non-BK options.

Anonymous
Reply

Posted on / Mar. 24, 2020 18:26:03

I second Mr. Steingraber's comments. Many of my small business Chapter 7 clients keep their business without problem, but it really does depend on the details. Speak with an experienced bankruptcy attorney *before* you make any decisions.

Anonymous
Reply

Posted on / Mar. 24, 2020 18:20:42

It depends on the "value" of the business, its assets, receivables, inventory, etc. There are too many moving parts in your situation to give you useful advice. I recommend you use the Find a Lawyer feature offered by Avvo. Make a list of 4-5 having many 5 star reviews from satisfied clients. If you don't get a prompt call back from one, go on to the next on your list. Some offer a free consultation by phone or in person.

Anonymous
Reply

Posted on / Mar. 24, 2020 18:02:16

I'm sorry to hear about your health condition. I hope that you will get better soon.
To answer your question, you might have to sell your business under bankruptcy. If you file a chapter 7 bankruptcy, then probably you will have to liquidate your business to pay off creditors. If you file a Chapter 11 or 13, you will ask the court to reorganize your debt, maybe lower it or extend the payment period for creditors. Since you want to keep a sole proprietorship, you probably want to seek a chapter 13 bankruptcy to extend the payoff period. To be eligible for chapter 13: you must have less than $394,725 in unsecured debt and secured debts are less than $1,184,200.
I hope that helps.

Can't find what you're looking for?

Post a free question on our public forum.
Ask a Question

Can't find what you're looking for?

Post a free question on our public forum.
Ask a Question
Search for lawyers by practice areas.
Find a Lawyer