Do you ever file personal chapter 7s for people whowantto keep their small business running?
Posted: Sat Aug 14, 2010 8:07 pm
I value the stock of the recently formed corporation as the same value
of the assets (FMV) if all the business debt was a sole proprietorship
and will be discharged in the bankruptcy.
If the corporation has been operating for some time and has debts of its
own, then I just look at the balance sheet using FMV for assets and if
the debt outweighs the assets, as it frequently does, then I list the
stock at $0. Most business clients operating entities have businesses
just as insolvent as themselves.
The post was migrated from Yahoo.