Business Exemptions

[Anon]

Filing Chp 7 and have LLC that will remain open (for now.) In Virginia and this state allows for $10,000 exemption for "tools of the trade". Have 2 pieces of equip and I will recommit to the loans (their value is about $10,000) Do I have an additional $10,000 that I can keep or is that exemption taken up by the equipment for which I will be paying? Stressed out and can't sleep.

[justbroke]

Are you filing or is the LLC filing? If the tools belong to the LLC, they don't belong to you... so if you're filing, you don't claim the tools of the trade.

Are you trying to do this pro se? If so, I highly recommend that you go through an attorney who understands the intricacies between you and the LLC entity. If the LLC has a loan, that doesn't mean that you need to reaffirm to the loan. You should never reaffirm something that you don't need to.

Now, I don't understand if you personally purchased the equipment and own it, or the LLC purchased and owns the equipment. You may only have a personal guarantee for the loan -- which is usually normal for closely held corproations.

[Anon]

I may not be giving enough information. I will be filing personally and not the LLC. I've personally guaranteed the loans for the equipment and need them to continue my business, so I don't mind repaying them. Where my confusion lies is I don't understand why I list all of the monies owed by the LLC, even if I've not personally guaranteed them, but don't get the exemptions for the additional equipment. I am filing, not the LLC so why do I have to let the people to whom the LLC owes money, know? I loaned the money to the company for the equipment I want to keep, but in the end the LLC does own it. It is confusing when there is a company involved. I will be filing with an attorney, but I've already used up my freebie appointment and he won't give me any additional info until I've paid him. Still stressed out but beginning to not care anymore. I must be turning the corner.