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I am the owner of a Corporation S - a trucking company with two trucks worth about 20,000.00 each. If I file for bankruptcy

Nutley, NJ |

If I file for bankruptcy, can the trustee take my company or trucks? I work for the company (my company, Corporation S) and I pay myself a salary. I need to file for bankruptcy but I am afraid that the trustee can take my company assets or my company. Can the trustee take the company shares?? How DOES this work if I file for bankruptcy!

Attorney Answers 4


  1. Are you the sole shareholder of this corporation? If so, then you would have to be able to exempt the value of your corporation (transfer value of its assets, any good will, etc.) in order to avoid any risk of the trustee liquidating assets of the corporation (assuming you are contemplating filing for chapter 7). Perhaps chapter 13 may be a better fit for you. It is highly recommended that you meet with an experienced bankruptcy attorney in your community to discuss asset protection and other issues that must be addressed before making an informed decision about filing for bankruptcy protection.
    Best of luck.


  2. Yes, the company and its assets are at risk.

    However, to know specifically what will happens depends on the specific circumstances and would require a case analysis by an attorney that has ALL the information to properly advise you.


  3. The bankruptcy code allows you to keep one motor vehicle valued at about $3500 (value after deducting liens) and any asset valued up to about $11,000. Are the vehicles in your name or that of the business? If they are in the business name, then it is important to know what other debts the business has. If the business debts exceed the value of the trucks then the business has no value to the trustee and you might keep the trucks. As you can see, there is no simple answer. Feel free to call me at 973-313-1200. I am in South Orange.


  4. What is your percentage ownership of the corp? Are the titles to the vehicles in your name or the corps? when you file personal ch 7, the trustee takes over control of any 'non exempt" interest you have in any business. If NJ uses the Federal Exemptions, you may use the wildcard exemption to cover close to 12k worth of equity in the vehicle/s (are there loans on the trucks?) if the corp owns the vehicles free and clear, you may want to consider a ch 13 or working out a structured payment plan with the trustee, purusant to 9019(a), in order to keep the such bk estate property.

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