I am one of 5 partners in a business that could potentially have to file bankruptcy. If so, I may also have to file for bankruptcy personally, as well. I am leaving the business and will probably start another, as sole owner. If my new business is incorporated, would it protect tools of the trade and parts inventory of the new business in the event of a personal bankruptcy?
1 Answer from Attorneys
The fact that you put assets into corporate entity will have no effect in bankruptcy. You still own the assets no matter if you own them out right or in an entity in which you own stock in.
Indiana's personal property exemption is $8,000. If your tools and inventory are worth more than that you will need some more advanced asset protection strategies, which would require meeting with an experienced bankruptcy attorney to plan accordingly. Like I always say, the best bankruptcies are planned years in advance.
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