Can I open a business after my creditor meeting without it counting as an asset?

Asked 8 months ago - Palm Coast, FL

I want to become partners in a new business. The last date for a creditor to dispute is february 4th. Ive already had all of my meeting and am just awaiting a discharge. Can I open a business in my name without it counting as an asset? Its a chapter 7 bankruptcy and I currently have no assets what so ever.

Attorney answers (5)

  1. Michael J Corbin

    Contributor Level 20

    7

    Lawyers agree

    Answered . A couple of thoughts. First, yes, you can begin a new business venture post-filing without it being counted as an "asset." What counts is what you had on the date of filing. So long as you were 100% truthful about your assets as of the date of filing, it's totally fine. That said, I'm curious how you'll be a "partner" in a new business when you state you have no assets whatsoever - presumably this "partnership" will require some kind of investment, otherwise it's really not a "partnership."

    Answers on Avvo are not to be considered a response to a specific legal issue in a specific jurisdiction - they... more
  2. Lewis Matthew Roberts

    Contributor Level 16

    5

    Lawyers agree

    Answered . Yes, you can open a new business. Since you said you have no assets, I am presuming you aren't using any pre-petition assets (like money) to start the business.

  3. Dorothy G Bunce

    Pro

    Contributor Level 20

    6

    Lawyers agree

    Answered . What is it that you are bringing to the table as a partner? As long as what you are bringing was disclosed as an asset & is exempt (aside from your charming self & your personal skills, of course), you could have proceeded immediately after filing. Hope this perspective helps!

  4. Elias Leonard Dsouza

    Contributor Level 10

    1

    Lawyer agrees

    Answered . I am always very cautious. The purpose of filing a bankruptcy is to get a "fresh start" not a "head start." If you are thinking of becoming a partner in a new business, it tells me that you had some kind of a secret deal with your other "wink wink" future partners. If you are caught lying your discharge can be denied, and if the fraud is egregious you may also spend time in a federal prison. I would suggest that you wait until you get your discharge, and then do whatever it is you want to do. It is only 60 to 70 days waiting time, and it is worth the wait.

    No attorney-client relationship exists by the submission of this answer. Elias Leonard Dsouza, Esq. is only... more
  5. Brent J Jensen

    Contributor Level 13

    2

    Lawyers agree

    Answered . You can start a new business any time. The big question is what are you putting into this new business and was this disclosed in your Chapter 7? As long as you disclosed all your assets, you should be fine.

    This is not legal advice and I am not your attorney until you retain my office. Always consult with an attorney in... more

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