How to Keep Business Assets During a Bankruptcy
During a bankruptcy most of your business assets are going to be assumed by a trustee. This person will determine what assets you keep and which assets will be liquidated to pay off your company's debts. However, there are certain strategies that you can implement to keep your many of your assets during a bankruptcy.
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Instructions
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Review federal and state lists of exempt property items for bankruptcies. The federal list reveals which pieces of property you will can keep after your bankruptcy. States also have their own list of exempt property. In many states you have the choice of which list to use.
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Evaluate your long term business assets. If your long term assets are more valuable than the liquidation value of your assets, you may qualify for a Chapter 11 bankruptcy.
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Initiate a Chapter 11 bankruptcy. This type of bankruptcy will allow you to keep your business assets, as long as you follow the rules of the program.
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Disclose all of your assets. To meet the requirements of a Chapter 11 bankruptcy and to maintain control of your assets, you must create a list of your company's assets.
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Reorganize your company and establish payment plans for your debts.
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Tips & Warnings
If you don't qualify for a Chapter 11, you can get some of your assets back six years after your bankruptcy as long as it was disclosed before the bankruptcy and as long as it was not realized during the 6 years after your bankruptcy.
