Legal Question in Bankruptcy in Kansas

bankruptcy and home-based businesses

My husband and I are considering filing bankruptcy. We are both self-employed...he sub-contracts his work out and I am an independent dist. with a network marketing company. I make a decent income with the network marketing co. but my checks are up and down from month to month- say 4000 one month and 800 the next. I average about 2500 a month on the whole. Anyway, my question is I guess, is there ANY possiblity that they could make me sell my home-based business if we are filing personal bankruptcy? It would not be worth a whole lot if I did.

Asked on 5/04/03, 12:52 pm

2 Answers from Attorneys

James Rupper Powell, Brewer & Reddick

Re: bankruptcy and home-based businesses

The question is not whether one would lose the home based business, but what assets it has other than your efforts. Do you have inventory and what is its value? Do you have equipment? Depending upon answers to these questions, one would then have to decide whether a liquidation, chapter 7 bankruptcy is appropriate or whether, a chapter 13 bankruptcy would better support your needs. One may keep their assets in 13 whereas one gives up non-exempt assets in 7. It is a decision that requires a great deal more information than one can communicate or should communicate on the internet. You should consult an attorney. You may wish to call us for a free 1/2 consult at 316-265-7272.

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Answered on 5/05/03, 9:47 am
Ryan Hodge Ray Hodge & Associates, LLC

Re: bankruptcy and home-based businesses

Your question is too complex to give you a certain answer without knowing more. However, as a general rule they should not be able take your business. Certain assets of the business may be seized.

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Answered on 5/05/03, 10:32 am

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