Equipment Used in My Business Exempt?

[backontrackOH]

I am preparing to file for Chapter 7 bankruptcy and I have a question about the equipment I use in my on-going business. The value of the equipment is no more than $8000. Is business equipment considered exempt property? Can the trustee take my equipment? The income from this equipment provides my family of 5 with about 1/3 of it's annual income. What is the best way for me to make sure I can keep my equipment? Please help!

[HHM]

With a business involved that supplies that kind of income, you need to go see a lawyer.

Some states have a "tools of trade" exemption. You have to look at your state's exemptions specifically.

Is the business incorporated in any way (i.e. corporation, LLC, etc)?

[backontrackOH]

I live in Ohio. 'That' kind of income isn't that much, maybe around $15k a year. And my business is a sole proprietorship. Does that make a difference? Thanks for your quick reply!

[HHM]

Well...what type of equipment are we exactly talking about?

As a Sole Prop...that means that the equipment is personal property like anything else, and you will need to find an exemption that applies to it.

(your just as capable of looking up OH exemptions as anyone here)

[krielly]

We ended up having to file 13 because of my husbands business equipment. Vermont only has a 5,000 tools of trade exemption and we had approx 15K we couldn't exempt.

bummer..........

Depends on your state's exemption.

PS: my husband's business was "LLC" as well, but as a sole proprietor, his equipment is ultimately considered personally owned anyhow........