What Assets Can You Protect in Business Bankruptcy Chapter 7

1. What Assets Can You Protect in Business Bankruptcy Chapter 7? Submitted By Kingston Bankruptcy Attorney

2. In the first half of 2024, bankruptcy filings in the United States saw a notable uptick. A total of 40,262 bankruptcies were filed, marking a 7% increase from the 37,790 filings recorded during the same period in 2023.  This rise in bankruptcy cases, including business bankruptcy Chapter 7, highlights the ongoing financial challenges many individuals and businesses face.  In this article, we'll learn about what assets can be protected with these bankruptcy laws, how different business structures affect asset protection and some steps to take before filing for bankruptcy

3. Assets Business Bankruptcy Chapter 7 Can Protect • Personal Assets In Sole Proprietorships In a sole proprietorship, the business and the owner are the same in the eyes of the law. This means personal assets might be at risk in this business bankruptcy. However, some personal assets can be protected through exemptions. It's important to know what you can keep. • Corporate Assets In Corporations And LLCs Corporations and LLCs are separate from their owners. In these cases, only business assets are usually involved in the bankruptcy, and the personal assets of the owners are often safe. This is a big reason why many people choose these business structures.

4. Retirement Accounts Most retirement accounts are protected in bankruptcy. This includes 401(k)s, IRAs, and pension plans. The law sees these as important for your future and tries to keep them safe. There are some limits, but generally, your retirement savings are protected. • Tools Of The Trade Tools and equipment you need for your work can often be protected. This is to help you continue earning a living after bankruptcy. The amount you can protect varies by state, but it's usually enough to cover basic work tools. PersonalProperty Exemptions Each state has rules about how much personal property you can keep. This might include things like clothing, furniture, and a car. The exact amounts vary, but the idea is to let you keep your basic necessities.

5. Insurance policies Many types of insurance policies are protected in bankruptcy. This can include life insurance and annuities. The protection helps ensure you still have some financial safety net after the bankruptcy. Trusts and asset protection plans Some trusts and asset protection plans can help shield assets from bankruptcy. But these need to be set up well before you file for bankruptcy. Last-minute transfers can be seen as fraud and reversed.

6. Documents Needed for Filing Business Bankruptcy Chapter 7 in the USA

7. Conclusion Understanding what assets you can protect in business bankruptcy Chapter 7 is crucial for making the best of a tough situation. While the process can be complex, knowing your rights can help you save important assets.  Remember, the rules before considering bankruptcy in Chapter 7 near you may vary by state. It's always best to talk to a lawyer who knows the local laws. They can help you make the most of available exemptions and protect yourself as much as possible. With the right guidance, you can use business bankruptcy as a tool for a fresh start, not just an end. The Law Office of Brian Juran is here to help. Their experienced team understands the ins and outs of bankruptcy law and can guide you through protecting your assets. Visit their website today to schedule a consultation and take the first step towards securing your financial future.

8. Contact Us Kingston Bankruptcy Attorney Address: 654 Aaron Court Kingston, New York Website: https://kingstonbankruptcyattorney.com/ Phone: +1-8453394313 Gmb: https://maps.app.goo.gl/6FauEaoBrycrDJ2YA Content Courtesy https://kingstonbankruptcy.blogspot.com/2024/07/what-assets-can-you-protect-in-business.html