Posted by Bill Bronchick on April 06, 2005 at 10:47:12:
In a CH7 bankruptcy, your non-exempt assets become part of the bankruptcy estate. In Ch13, you remain in possession of your assets and pay under a re-payment plan.
If you have others (family members) own the assets, you could theoretically remain in control.
Remember, there’s a big difference between the kind of protection you have against a lawsuit and the kind of protection you have in bankruptcy.
Corporations - Posted by Gerald Walker
Posted by Gerald Walker on April 04, 2005 at 16:22:20:
If a person owns real estate in a " C- Corporation or LLC" through a land trust, how well protected is the real estate in a personal bankruptcy?
Re: Corporations - Posted by William Bronchick
Posted by William Bronchick on April 05, 2005 at 20:50:37:
It isn’t… your ownership in the Corp is part of the bankruptcy estate, as is your interest in the LLC.
Re: Corporations - Posted by Gerald Walker
Posted by Gerald Walker on April 06, 2005 at 07:49:08:
If that is the case, can a person establish a corporation, not issue stock (would not have an interest in the corporation) thereby avoiding the courts? Or can a person issue stock to themselves and declare no value to the stock in that class of stock, while maintaining control of the corporation?
How is it a person can own nothing in their name, but control it all through a corporation and still impact the corporation if they file a personal chapter 13? It is true the only thing the courts could get is the interest in the corporation? There has to be a way to file chapter 13 and not have it affect a corporation. How would a CEO of some big corporation (say AT&T) file and not have it affect the corporation? I understand they could take his shares of stock (if they had value). But the corporation in not affected because of the filing or is it? I have heard it said ?You want to own nothing in your name but control everything". I should be able to control a 10 million dollar corporation and not have a personal bankruptcy affect the corp.???