New biz and Ch7

[teddyselkirk]

Hi everyone. I wanted to get some clarity on this. My girlfriend is going to be filing BK papers. We live together in her house.

I used to take people hunting as a guide as a P/T business. (last couple of Fall(s))I let her handle the books and things turned into a bit of a mess b/c this specific business I ran as a sole proprietor, but because she was so good at handling things I put her name on my account.

I want to start a new business where I sell hunting gear and such over the internet.

This time i want to set it up so that she is as far away from it as reasonable. (I will do my own books and all of that).

Any advice as to do this in a way I don't end up just giving it all to the trustee?

[last2cents]

Teddy - if you guys are not married, and her name is not affliated with the NEW business in any way, and SHE'S the one filing BK - it's none of the court's business. She's filing - not you, correct?

If you were married, it might be a different story - depending on the state you're in.

Just make sure that her name is not on any of the paperwork (i.e. business bank accounts, corporate filings, etc.).

[teddyselkirk]

I keep telling myself it will be that simple but one of the future creditors is a bit of a psycho who I know will claim I am hiding a billion dollars of stuff, LOL.

What then?

[last2cents]

Once again - YOU are not filing.

Here are few possible scenario's:

#1 - Mr. Psycho shows up at your GIRLFRIENDS'S 341 and tells the trustee that "TEDDY HAS $50 BILLION IN A SWISS BANK ACCOUNT". The trustee is not going to care - you aren't filing, so what if you have $50 Billion? Look at it this way, let's say Donald Trump has a new girlfriend - we'll call her Ivana B. Ivana. Ivana is in hock up to her eyeballs, and files chapter 7 - the trustee can't even look at Donald - she has no claim to HIS money.

Now, these two is where you can get into hot water:

#2 - Mr. Psycho pops up and says that your GIRLFRIEND has $50 Billion in a swiss bank account, the trustee is going to be all over HER and her paperwork trying to find the $50 billion.

#3 - Mr. Psycho says that GF had $50 billion, and GAVE it to you to hide somewhere - then the trustee might want to look at you a little closer. But I think that he would have to see something in her paperwork to support the fact that she ever had $50 billion in the first place.

Someone else on the board recently had a scenario in which relatives were claiming that they had all these assets (which they really didn't)...that thread might apply to you (sorry I don't remember who the OP was).....

The other question to ask is are YOU obligated to Mr. Psycho for the debt? If its strictly in her name - and you're NOT hiding $50 billion for her.....I don't think you need to be concerned.