Money in the Bank

[kingofspades]

Ok here is my situation. Me and my business partner have been in business for 7 years now. We reached the point where we borrowed enough money to keep the business alive the past year, and that it might be time to throw in the towel. My question is, the only money I have left is in a mutual fund that i got from my grandpa many years ago. I would like to just cash that money out so me and my wife have some money in our pocket before we file Chapter 11.

The Mutual fund is through Wells Fargo, where our business and my personal bank go through. If we BK business and personals, what happens to that money? We have a trailer loan through Wells Fargo and a Business line with them for $20,000 as well. Can Wells Fargo freeze that money, or anybody else while going through the BK? Am I able to take that money out as cash and just put it somewhere? Will that affect the BK process? What are my options.

Thank you

[awayalways]

kingofspades, assuming you have a corporation the simple answer is that your business interests and all other non-exempt business assets will become part of your BK11 estate. Your personal money is a separate issue as would any personal BK7 or BK13 filing. I wouldn't see any need to file a business BK11 if you are liquidating. And if you default on a personal liability with WF, you should check your contract terms to see what they may do in that case.

You can do whatever you want with your personal assets before you file/(are insolvent). But you need to be honest in any future BK filing. The court has certain lookback periods where they will ask you what you did with your money and you may have to surrender it to the BK estate. Check your state personal exemptions, because it will tell you what you can keep in bankruptcy.