My husband and I are considering filing bankruptcy as our credit card bills have gotten the best of us. I'm VERY appreciative of the information I've gathered on this board but do have a couple of questions that hopefully someone can help me with.
We don't own a home, don't have much value in our car, and have very little personal property. But we do own a small business that is registered as an S-corp. The business doesn't make much money--pretty much just covers expenses. But my question is, how will a trustee value our business? Will it be based on the actual inventory that the business holds, or will he/she consider the capital stock and/or debts of the s-corp? In other words, if we have $20,000 worth of inventory, $2,000 in the business account, and a $25,000 dollar debt, will the value of the company be -$3,000? Also, if we have 3 years remaining on our lease at 2k/month, does this count as a debt of the business?
And what about advertising that is in place and name recognition, does that add to the value, or do they simply look at it from a numbers standpoint?
Any insight would be appreciated!
We don't own a home, don't have much value in our car, and have very little personal property. But we do own a small business that is registered as an S-corp. The business doesn't make much money--pretty much just covers expenses. But my question is, how will a trustee value our business? Will it be based on the actual inventory that the business holds, or will he/she consider the capital stock and/or debts of the s-corp? In other words, if we have $20,000 worth of inventory, $2,000 in the business account, and a $25,000 dollar debt, will the value of the company be -$3,000? Also, if we have 3 years remaining on our lease at 2k/month, does this count as a debt of the business?
And what about advertising that is in place and name recognition, does that add to the value, or do they simply look at it from a numbers standpoint?
Any insight would be appreciated!
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