Business and exemptions

[GWBcasualty]

I have been browsing these forums in a while and couldn't find an answer to this.

I am not late on anything and have not maxed out my CC yet, but if the economy doesn't improve quickly, I can't see a way out...

Based on the research I have done so far, we would qualify for Ch 7 and we would be able to keep our vehicles. We would also like to keep our home (no equity or close to it) and would be able to do it if I can keep my business going.

My business has always been profitable, is a sole proprietorship and all the business debt is unsecured debt. The only business asset is the inventory which I obviously need to operate. The inventory has an asset value that is probably around 30Ks. I am in California.

Would I be able to use the household exemption or the wild card exemption to keep my business operative?

Furthermore, what happen to the sales (all CC sales - I own the terminal - do not bank with anyone I owe money to) from the moment I file Ch 7 to the discharge?
What happen if I get a good sale during the 90 days or even after discharge?
Can they go after that money?

Thanks in advance.

[GWBcasualty]

I will try to simplify my question... sorry, re-reading my post I see that there is a lot of info that may be irrelevant.

a) Can the inventory of a sole proprietorship be claimed as an exemption?
(household, wild card... tool of the trade... all of the above?)

b) What happens to the sales made between the filing date and the discharge date?

c) What happens to the sales made after discharge?

Thanks in advance.
I understand if nobody has a definite answer, I appreciate reading all the helpful posts anyway.

[HHM]

(a) About the only exemption that would work is a Wild Card Exemption. The other ones have specific definitions that generally would not cover Inventory. Inventory is Inventory, if you file Chapter 7, and this operation is a sole-prop, that inventor is property of the BK estate and will be liquidated (see what is happening to Circuit City).

(b) If the inventory being sold is property of the BK estate, the proceeds belong to the Trustee.

(c) See answer to B. Now, if the inventory that is being sold was acquired AFTER the date you filed, then you get to keep that money.

You need to speak with an attorney, if you are sole prop and the business has assets (inventory), a BK 7 will liquidate those assets leaving you nothing.

[TreddinWater]

Hi, I'm new (and in in CA). I have a variation of the above. I had a new medical practice gthat never quite took off, and I ran out of capital and had to close the doors. I've met an attorney and qualify for CH 7. I have no equity in home, no luxury good or items of value. That's the easy part. My leases, loans, laser leases were all personally guaranteed (will never, ever, ever do that again) and CA is community property state.
My wife is 50% owner of retail business (S-corp) and 100% owner of smaller retail store (S-corp). Neither of stores make any money and she hasn't paid herself in a year. There is debt and future debt (lease for property for another year or so. Her main assets are the inventory (maybe $200,000 total for both stores.)
Distilled down questions:
1. Will a trustee go after her corporation's assets even though it will effectively close her doors and shut down business and by extension force her partner out of business.
2. Do the Corporation's debts and future obligations (balance sheet) go into the calculation as to whether they will liquidate the inventory?
3. Will Chapter 13 on her businesses protect it?
4.There is a list of CA exemptions (CCP 704) option that lists "Property of Business Partnership" as exempt (no amount listed) and a Section reference as "Corp. 16501-04", in some previous listings it was "CA corp. Code 10525" which is replace by the previous listed.

I know these are question for a CA Atty., but curious if anyone has experienced a similar situation, or knows where to find the code (CA? or FED?)
Thanks - what a great resource...