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I’m a sole proprietor, will my business’ checking account be frozen if I file Chapter 7 Bankruptcy?

December 28th, 2009 Leave a comment Go to comments

I am a sole proprietor with a small business. I opened a checking accout at Bank of America for my business so that my customers could pay my company with checks/credit cards. If I file personal bankruptcy (Chapter 7), will my business checking account be frozen?

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  1. gpatrick900
    December 28th, 2009 at 07:15 | #1
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    Do not listen to other poster here. Ask a bankruptcy attorney.

    If it is your business try chapter 11 not chapter 7. If your business in incorporated and you file personal bankruptcy your business assets are protected. If you file on your business that is incorporated your personal assets are protected.

    I don’t think you have to report personal checking account if your bankruptcy is incorporated but check with a bankruptcy attorney.

  2. chaseunchase
    December 28th, 2009 at 07:15 | #2
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    Yes. Your business and its assets will probably be seized.

  3. Island*Chica
    December 28th, 2009 at 07:15 | #3
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    Sure will…….. all assets whether personal or business will be seized.

  4. jmrouleau88
    December 28th, 2009 at 07:15 | #4
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    It wouldn’t if you didn’t have a sole proprietorship…you should have an LLC or Corporation. A sole proprietorship provides no protection between the owner and the business. The worst that could happen with an LLC or Corporation would be that you are required to sell your ownership for equity buy depending on your state this might not be possible.

  5. brandon
    December 28th, 2009 at 07:15 | #5
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    I don’t think that it will be frozen immediately but I believe it will within a few days. I KNOW that if you try to hide ANY assets you will be committing a federal crime that carries stiff penalty’s.I advise against bankruptcy anyway there is still a stigma attached and you owe the money,after all you are libel for the debts of the business.Pay them. Try looking up Dave Ramsey for ideas and inspiration. Good luck.

  6. tom m
    December 28th, 2009 at 07:15 | #6
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    Check with attorney the will be handling the bankruptcy. It depends on how much is in your account. There are asset protection amounts that vary from state to state. Another reason to ALWAYS INCORPORATE YOUR BUSINESS.

  7. Nick
    December 28th, 2009 at 07:15 | #7
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    Dear friend
    I think you should update yourself with the proper and exact information for your issue. I would recommend you to go through the following website to get the correct and brief information. Thanks

    http://www.usalegalcare.com/Bankruptcy.htm

    Good luck

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