Sole proprietor business in Chapter 13 Planning for Liquidation Analysis
Posted: Mon Jan 16, 2012 7:44 pm
I have a manufacturing business owned as a sole proprietorship. We're
clueless as to what it's worth. It barely makes the couple a living at
this point, they bring in about $40,000/year.
Most of my small business clients have incorporated business and their
business is as insolvent as they are as individuals so I don't need to
worry about the value of the business. However, in this case, since all
the unsecured debts will be paid/discharged in the Chapter 13, the
business has whatever value it has regardless of the debts.
So what I'm considering for a case to be filed as a 13 in Riverside is
to take their main supplier who they are really behind on, and making it
secured, wait 90 days + and then the value of the business will not be
much more than they owe the main supplier.
Anyone see any problem with this, or think granting the security
interest is unnecessary?
Steve
Law Offices of Steven B. Lever
>
> Steven B. Lever
>( Tel. (562) 436-5456 ext. 6470
>( Fax (800) 360-5161
>* sblever@leverlaw.com
> www.leverlaw.com
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