What are the major deadlines in a Corporate Chapter 7 case?

[howtoplan]

We have already done our 341 meeting. I understand corporations do not receive a discharge. So what are the steps left? Just liquidation of assets and administratively closing the trust? Is there a general time line for a no asset case?

[last2cents]

Please forgive me for sounding astounded - but how in the world did you file a business chapter 7???????

I thought that businesses could only file chapter 11???? or just dissolve????

(sorry -didn't mean to hijack your thread......but I'm extremely curious....)

[whipster1]

No timeline, just when the trustee decides there are absolutely no assets anywhere.

[howtoplan]

well... some times there is a reason

Please forgive me for sounding astounded - but how in the world did you file a business chapter 7???????

I thought that businesses could only file chapter 11???? or just dissolve????

(sorry -didn't mean to hijack your thread......but I'm extremely curious....)

As you might know chapter 11 is extremely expensive and usually ends in chapter 7 conversion. The dissolution doesn't get rid of the subsequent management liability issues associated with the old company. Our case is very complicated due to intellectual property owned by the company but developed by us personally. Which we hope to purchase from the estate. It is hard to simply dissolve a company when you have spent your entire lifetime developing a system and then let it go into the public domain when the company closes. It is "cleaner" buying it back from the trust to hope to be able to use it in the future.

Another point is that our company "A" was not failing financially but we got a judgement against us personally (guarantee) for another company "B" that we were involved in. The bank attached to our successful business through cross guarantees, we didn't even know were possible. damn fine print. Thus the Chapter 7.

[last2cents]

OK - I think I get it - you filed the 7 so there would be some hope of hanging on to the I.P. rights........therefore, you could retain those rights, and really have a chance at a "fresh start".....

I didn't think it was possible for a company to do a 7 - you learn something new every day.....

Thank you for the info!

[howtoplan]

you got it!

Wish us luck.

[DebtEnder]

Sure it's possible for a company to do BK7, it's how they go out of business....

I don't have anything else to add but good luck buying back your IP rights.

[JThorn]

Our case is very complicated due to intellectual property owned by the company but developed by us personally. Which we hope to purchase from the estate..

How does this buying back intellectual property from the estate work? Who sets the value of the copyright that you mention or would the trustee get an appraisal for that?

[frogger]

I didn't think it was possible for a company to do a 7 - you learn something new every day.....

I know that it's possible, because I'm in the process of doing one now.

Speaking of learning something new - did you know that corporations have no exemptions and that EVERYTHING a corporation has will be liquidated?

[HHM]

Unfortunately, there is no timeline. It depends on the trustee. They could take 6 months, they could take 2 years.