incorporation before bankruptcy

[shopguy40]

I am a sole proprietor of my buisness,I have over $100 k in assets ,Is it possible to incorporate to protect my assets ,and then file chapter 7 ? Thank you and Happy New Year

[HHM]

Nope. Not at all.

Or I should say, the corporation will NOT provide you the protection your seek. If you have assets, you have assets. In bankruptcy, your ownership interest in the corporation becomes an asset of the BK, as such, the trustee inherits your rights as owner of the corporation and can thereby liquidate the corporate assets.

Are the assets entirely unencumbered, meaning no liens or loans against the assets?

[despritfreya]

HHM is spot on, not to mention the fraudulent conveyance of personal assets to an entity. Better stay away from a 7.

Des.

[shopguy40]

Incorporation

HHM is spot on, not to mention the fraudulent conveyance of personal assets to an entity. Better stay away from a 7.

Des.

What is the time frame ,Hypothetically if i incorporated right now ,and waited a yr or 2 before i file wouldnt i be ok then ? The main issue is I have unsurmountable medical bills ,I will never be able to pay off .Thanks

[shopguy40]

assets are free and clear

[HHM]

There is no time frame; as far as bankruptcy is concerned, the corporation doesn't exist.

In a situation like this, you need to get a really accurate liquidation value of your assets, how much are they really worth if you did a fire sale?

What is your income like. You may have no choice but to do a chapter 13 or chapter 11, either of those options are better than letting your creditors have their way with you.