Bankrupcy and Sole Prop. [mechanic work] [business assets]
Hello,
I'm just trying to figure out what my business assets are considered in a Ch7 BK – for a Sole Prop. in Florida.
Are they considered Tools of the Trade and exempted? I have a Computer 3 years old), Printer, Monitor, All-In-One, desk (more or less everything computer related). I use this computer for at least 85% business related usage.
Also, my husband has about $250 in tools that he uses for mechanic work – for side work (at least once a month – and barely makes anything on it) every once in a while (nothing registered by the state – just under his name, etc).
Would those be considered tools of the trade (since it brings in a little bit of income, etc).
Also.. the car… we just bought a car for $3200 in January (solely paid for), that's exempted correct? As its our only car (and my husband's only way to work – and my only way to get my kids to Dr's , etc).
Also… does getting a substantial income tax return (that we usually buy stuff that we can't afford during the year (like the car), can we still file CH7? Or would we have to file CH13? Besides our income tax, we don't have much of any $$ during the year. I doubt we would be able to pay anything monthly (as we only have $1450 take home most months), etc.
I wanted to make sure about stuff before I attempted to file (both my husband and I would file)
Thanks!!
Reply:You need to take agood look at Fl. exemptions. With the exception of a home, they're puny.
http://www.thebankruptcysite.com/bankruptc…ons/florida.php
Reply:Don't they use garage sale pricing on assets?
If so, just about everything we have would be worth under $2000 (besides the "new" car we just bought).
Would you think, based on an income of around $1450/month (take home), that they would just brush off any "assets" ?
Most of the time we don't have $5 left over after everything is paid for (we can't even afford debt consolidation).
I'd seek a lawyer if I could afford one.
Reply:
If you only have a few minor assets that aren't exempted, possibly as the equity in the car, often the trustee will abandon them anyway as the time and effort to sell them aren't worth the return.
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