Can I exempt my 2 active S-Corps & file personal bk 7?

[Ndkblondie]

We should have filed bk a year and a half ago but the bank wouldn't work with us on our remod if we were in bk. The bank offered crap each time we attempted to negotiate with them AFTER I paid their 3 months of required payments each time. We tried a short sale but the bank said they would come after us for the difference and now they won't work with us at all.

We filed bk 7 on 8/10, Chase requested waiver for relief of automatic stay, the sale is this Tuesday.

While all this was going on, we have been diligently building our S-corps which don't own assets but do have the only money we have in their accounts. My question is, can the S-Corps be exempted or will we now lose our house, our business, and be even worse off than we are now? My attorney listed them as exempt but will that fly?

Should we dismiss this bk and protect the only thing we have left?

Thank you!

[despritfreya]

In response to:

"we have been diligently building our S-corps which don't own assets but do have the only money we have in their accounts. My question is, can the S-Corps be exempted or will we now lose our house, our business, and be even worse off than we are now? My attorney listed them as exempt but will that fly?"

Before I can give my opinion (for what it's worth), please advise:

1. What state are you in?
2. What exemption was used? For this info look on Schedule C. Please list the Statute as it appears on Schedule C (St or Fed) and the amount claimed exempt.

Thanks.

Des.

[Ndkblondie]

I'm in California.

Are you talking about my tax return? I'm talking about exempt in the BK schedules. On my tax returns there was 0 income in both companies in '08 and we haven't filed '09 yet (extensions) so not sure what they will look at or base things on.

[despritfreya]

You had indicated that your attorney claimed the entity as "exempt". Look at Schedule C in your bk documents. It is your list of bk exemptions. I need to know which California exemption you took - either some subsection under 704 or 703. Don't forget the amount claimed.

Thanks.

[Ndkblondie]

Ahhh, got it, sorry about that. Sched C Stock & Interests in Businesses: CCP 703.140(b)(5) Value claimed: 0 Current Value of Prop w/out Ded Exempt: Unknown

[despritfreya]

That is Califorina's :"wildcard" exemption so it looks good to me.

[Ndkblondie]

What does that mean exactly? They can't touch my s-corps? Where can I see the parameters of the wildcard exemption?

Woohoo! Thank you!

It's a good day. Just found out Chase filed incorrectly for relief from stay and can't sell my house at auction on Tuesday and now your info too. Maybe things are finally turning a corner!

[despritfreya]

[Ndkblondie]

Ok thank you.