I'm looking at filing chapter 7 sometime in the next few months, probably by May or June. This is all non-consumer debt that I accumulated while running my business over the past 9 years. At first, I was set on filing Chapter 13, but I think that would be foolish, because while the business is still bringing in SOME money, it has been in steady decline over the past several years. A Chapter 13 would most likely not work, and from everything I've read, if you can do a 7, in most cases - you take that 7.
My question is two-fold - my business has been my income over these past 9 years. I'm considering starting a new "business" which will be basically selling handmade items to order on ebay. All items will be custom made, thus, there will be no inventory - I'll be using my computer and some small raw materials (not very cost intensive).
I want to start this ASAP, so I can see if I can really support myself doing it. I'd hate to file 7, try this, fail, and then be screwed.
Since all it will really be (to begin with anyway) is a basic Ebay account, should I have any problems? It's really not an asset - I am the asset really. As I said, I will need my computer, as well as my printer and some supplies to get going, so hopefully I can protect those items in the chapter 7. Later - as in AFTER I file, I would like to expand into having my own website etc. & maybe incorporate, which is where I think I might have a slight problem, but I think if I just do the same type thing, but under a new and unique name not associated with my ebay profile, I should be OK?
The second part of my question is my existing business - I'm told the trustee may want nothing to do with my existing inventory of t-shirts and novelty items. I'm not sure I want anything further to do with them to be honest. I'm not even sure I would entertain buying the stuff back, so short of abandonment, I'm fully prepared to just let it all go. Anyway, I was thinking I could probably lower my prices to generate some sales, and clear out some stuff before I file. I guess you could call it a fire sale, but I'm not planning on giving the stuff away. The prices won't be anything that can be considered out of line with what others are selling things for on sale, or on ebay, but they will be cheap. I'm not paying my CC bills (of course), so would it be a problem for me to draw that money out, pay my legal expenses, and possibly pre-pay some other stuff (insurance, heating oil, maybe some secured debt)?
I'm not thinking either of these should give me serious problems, but I always like to check with the experts!
My question is two-fold - my business has been my income over these past 9 years. I'm considering starting a new "business" which will be basically selling handmade items to order on ebay. All items will be custom made, thus, there will be no inventory - I'll be using my computer and some small raw materials (not very cost intensive).
I want to start this ASAP, so I can see if I can really support myself doing it. I'd hate to file 7, try this, fail, and then be screwed.
Since all it will really be (to begin with anyway) is a basic Ebay account, should I have any problems? It's really not an asset - I am the asset really. As I said, I will need my computer, as well as my printer and some supplies to get going, so hopefully I can protect those items in the chapter 7. Later - as in AFTER I file, I would like to expand into having my own website etc. & maybe incorporate, which is where I think I might have a slight problem, but I think if I just do the same type thing, but under a new and unique name not associated with my ebay profile, I should be OK?
The second part of my question is my existing business - I'm told the trustee may want nothing to do with my existing inventory of t-shirts and novelty items. I'm not sure I want anything further to do with them to be honest. I'm not even sure I would entertain buying the stuff back, so short of abandonment, I'm fully prepared to just let it all go. Anyway, I was thinking I could probably lower my prices to generate some sales, and clear out some stuff before I file. I guess you could call it a fire sale, but I'm not planning on giving the stuff away. The prices won't be anything that can be considered out of line with what others are selling things for on sale, or on ebay, but they will be cheap. I'm not paying my CC bills (of course), so would it be a problem for me to draw that money out, pay my legal expenses, and possibly pre-pay some other stuff (insurance, heating oil, maybe some secured debt)?
I'm not thinking either of these should give me serious problems, but I always like to check with the experts!
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