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Contractor and incorporation
Hello Steve: After posting this, I came to the same conclusion.What I think will work: create a corporation, and assign all new receivables (generated by work done after incorporation date) to the corporation. Announce creation to customers, and ask that they write checks to the corp rather than the individual.Continue to collect the receivables generated by the individual.Assign accounts payable to the corporation.Stall creditors until individual-generated receivables are collected and spent in the normal course of the individual's life.File chapter 7 case when individual's receivables are negligible.Thanks for keeping me on the straight and narrow.
- John
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To: "cdcbaa@yahoogroups.com"
Sent: Saturday, April 28, 2018 11:54 PM
Subject: Re: [cdcbaa] Contractor and incorporation
scharged all that business debt if the business had remained a sole proprietorship. The net effect is a fraudulent transfer.
Steve Lever
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On Apr 26, 2018, at 7:59 AM, John Faucher j.d.faucher@sbcglobal.net [cdcbaa] wrote:
ontractor who works from his truck; no store front, no employees. He's trying to discharge $150,000 in personal income tax.After much questioning, I have finally determined that his business's balance sheet shows $80,000 in accounts receivable, and $150,000 in accounts payable. Can't put him into a chapter 7, because the accounts payable will be snatched up by the trustee.If I were to donate the A/R and the A/P to a new corporation simultaneously, then file chapter 7, would the trustee see this as a fraudulent transfer? I think not, because the total value transferred is less than zero. But you guys are wiser than I. If I do this transaction, how long should I wait before filing a chapter 7? Would I avoid the issue by filing a chapter 13 for him?- John D. Faucher818/889-8080
The post was migrated from Yahoo.
Hello bankruptcy practitioners:My client is a sole proprietor contractor who works from his truck; no store front, no employees. He's trying to discharge $150,000 in personal income tax.After much questioning, I have finally determined that his business's balance sheet shows $80,000 in accounts receivable, and $150,000 in accounts payable. Can't put him into a chapter 7, because the accounts payable will be snatched up by the trustee.If I were to donate the A/R and the A/P to a new corporation simultaneously, then file chapter 7, would the trustee see this as a fraudulent transfer? I think not, because the total value transferred is less than zero. But you guys are wiser than I. If I do this transaction, how long should I wait before filing a chapter 7? Would I avoid the issue by filing a chapter 13 for him?- John D. Faucher818/889-8080
The post was migrated from Yahoo.