BUSINESS CHAPTER 7 BANKRUPTCY ON LONG ISLAND--
FILING A CHAPTER 7 WHEN A BUSINESS IS INVOLVED
This article, for individuals considering filing a chapter 7 bankruptcy on Long Island, was written by
Long Island bankruptcy lawyer Alan Pressman
If you are an individual who owns a business whether as a sole proprietor (i.e. a D/B/A) or a corporation
(in most cases, the debtor will own an "S" corporation) - - and you file a Chapter 7 bankruptcy on Long
Island, you typically do not have to stop operating your business at the time that you file your Chapter 7
bankruptcy. This is differentiated from a situation in which a corporation (as opposed to an individual) is
filing the bankruptcy. In a case where the corporation (rather than an individual) is the Chapter 7 debtor,
the corporation must cease doing business at the time that corporation's Chapter 7 bankruptcy is filed
with the Bankruptcy Court.
The types of business debts that get discharged in a personal chapter 7 bankruptcy filed by a business
Debts owed to vendors
Debts owed to landlords
Debts owed to utilities
Business lines of credit (sometimes these are secured by a lien on the business owner's house, and as
such the business owner continues to pay these).
Business credit cards
Debts owed for advertising by the business
In a case where an individual Chapter 7 bankruptcy is being filed, and the individual owns a business, the
Chapter 7 trustee will be scrutinizing the assets of the business as well as the income of the business.
In terms of the assets, the Chapter 7 trustee will be reviewing the business's assets (whether the debtor
owns a sole proprietorship or a corporation) to see if there are any assets of significant value which the
trustee might have the right to sell off-- and use the proceeds to pay off some of the debtor's creditors.
Keep in mind that you will not necessarily lose any of your business assets - - it will depend upon the
value of the assets.
In addition, the trustee will be reviewing the income of the business to make sure that the amount of
income has been accurately stated on the bankruptcy petition. In particular, the trustee will likely want
to see a profit/loss statement for the business - - itemized on a monthly basis and listing, in separate
columns, a) the income and b) the ordinary & necessary business expenses of the business - - for the six
months preceding the filing of the Chapter 7 petition.
Also, the Chapter 7 trustee will often ask to see the business's tax returns (in cases where the debtor
owns a corporation) for the last 2-3 years, as well as the business's bank statements and cancelled
checks for the last 2-3 years ( regardless of whether the business is a D/B/A or a corporation). The
trustee may, as well, ask to see the debtor's personal bank statements and cancelled checks for the last
6 months - 3 years. So it is important, if you own a business and want to file a Chapter 7 bankruptcy,
that you maintain and keep good records (i.e. profit/loss statements, tax returns, bank statements and
cancelled checks) from which the Chapter 7 trustee can ascertain, and verify, the income and expenses of
your business. Maintaining good records is important because there is a section of the Bankruptcy Code
(Section 727(a)(3)) which states that a debtor can be denied a Chapter 7 discharge if he/she fails to
maintain satisfactory records from which the trustee can ascertain and verify the debtor's financial
condition, assets and income.
I have represented Long Island business owners, for chapter 7 bankruptcy, on cases involving:
Home Improvements business bankruptcy
Restaurant business bankruptcy
Limousine business bankruptcy
Landscaping business bankruptcy
Hair salon business bankruptcy
Photography business bankruptcy
Graphic arts business bankruptcy
Greeting card retail store bankruptcy
Chiropractor's business bankruptcy
Financial Planner's business bankruptcy
If you would like a free consultation on Chapter 7 bankruptcy with Alan Pressman,
call (631) 234-3883. I have been actively handling bankruptcy cases on Long Island for more than
30 years. My office is located at 3100 Veterans Highway, Bohemia, Suffolk County, Long Island
(approx. 2 miles southeast of LIE exit 57).
My fees are very reasonable.
Evening appointments are available.
I will handle your case personally.
My law practice is focused 100% on handling bankruptcy cases. Bankruptcy is my entire law
Call now for a free consultation.
3100 Veterans Highway, Bohemia -- Long Island Expressway Exit 57, approx. 2 miles southeast
Thanks for taking the time to visit my website.
Alan Pressman, chapter 7 business bankruptcy lawyer near Rokonkoma,11779; Hauppauge,11788;
Bohemia,11716; Holbrook,11741; Islandia,11749; Central Islip,11722; Brentwood,11717; Islip, 11751;
Islip Terrace, 11752;Bay Shore,11706; East Islip,11730; West Islip,11795; Oakdale,11769;
Sayville,11782; Blue Point,11715; Lake Ronkonkoma,11779; Smithtown,11787; Nesconset,11767; Saint
James,11780; Lake Grove,11755; Deer Park,11729; Commack,11725; East Northport, 11731; Huntington
Station,11746; Wheatley Heights,11798; Wyandanch,11798; Babylon,11705; North Babylon,11703; West
Babylon,11704; Kings Park,11754; Centereach,11720; Holtsville,11742; Medford, 11763; Middle
Island,11953; Stony Brook,11790; Coram,11727;Port Jefferson Station,11776; Patchogue,11772;
Brookhaven,11719; Manorville,11949; Yaphank,11980; Farmingville,11738; Shirley,11967; Mastic,11950;
Mastic Beach,11951; Bellport,11713; Center Moriches,11934; etc. --
serving all of Long Island since 1981
Copyright 2011, Alan Pressman Attorney At Law