Trying to open up a business during BK...

[ltrain823]

I'm just curious to hear if anyone out there that has filed for BK was able to open up a business while in BK. I have a good friend who is willing to go partners with me in a business and he would front the down payment for the loan as well as put the loan in his name. The only payback is that I run the business and he stays a silent partner.

If the business because successful what happens to the BK? I'm hoping for a Ch. 7 but my atty says it's more than likely that I'll end up with a Ch. 13.

[workinghard]

That's a good question!

If anyone knows please share, I would like to know about sole proprietor businesses (like a work-from-home thing) I need to supplement my income by I don't want to go out of the home but so many businesses are started online nowadays on a shoestring budget I was thinking of trying it out.

[Flamingo]

I don't think you would have a problem if you are able to file a Chapter 7 and open up this business after the discharge of the Chapter 7 but if you have to file a Chapter 13 you may run into a problem if you are a partner in this business and it generates income during the course of your Plan. I would certainly run this past your attorney if you are to file a Chapter 13 and research the small business laws in your state to be in conformity with necessary requirements, forms, fees and licenses.

As to Workinghard's question, while there are some folks who are successful in running an online business from their home, the majority get scammed (i.e. those stuffing envelopes ads) or they find there is too much competition out there to even make a profit. eBay has a lot of folks running eBay stores on their site but is now glutted with so many of them that multiple same items are always for sale and do not sell. Make sure you fully investigate any online business offers you may be thinking about or if it is if your own creation (i.e., setting up a website to sell your own personally made jewelry or other item), that you investigate the small business laws of your state.