All Assets Under Parent Name???

What is the name of your state? Mass

I'm currently looking to File Ch. 7 and was unsure of a few things. I am a sole prop. of a small Landscape Co. and I have both personal and business related debts that I need discharged. I was planning on paying the debt back in the future when I had the cash but creditors are starting to file court cases against me. I'm young and I really have no assets (? below) so I think Ch 7 would be better for my future.
1) I took out a loan from my dad and still owe him about $10,000 I definitely want to repay him either way but not sure how the court will view this debt?
2) I have a truck under his name but it's insured under mine and I make monthly payments to him how will this be viewed?
3) Most equipment I bought when I started was with his money and I've gave him like $2,500 so far will this be viewed under my assets or can he keep the equipment and maybe lease it to me?
4) I'm a part time college student and running the business also but don't have the cash to even file for taxes this past year. Do I wait to file before I declare Ch. 7 or do it after.
5) After I file I plan on restarting and forming a Corp. under a different business name. I was young and have learned a lot from my mistakes. I plan on doing things the right way. As far as the equipment I have will I be able to keep it if I am staying in the same line of business?
6)Last One... What is the expected cost for filing Ch. 7 w/ an Attorney?

Anyone?

[Ladynred]

Ok. I don't know much about the business end of how this would work but I'll try to give you some general answers. Perhaps one of our legal minds will contribute on the business effects.

1) I took out a loan from my dad and still owe him about $10,000 I definitely want to repay him either way but not sure how the court will view this debt?

Paying back a relative is not going to work. Was the loan in writing ? Paying back loans to relatives is considered an 'insider preference' and a Trustee won't like it. You will have to include the debt to be discharged and you can pay him back later, after your discharge. There's nothing that says you can't voluntarily repay a debt after your BK.

2) I have a truck under his name but it's insured under mine and I make monthly payments to him how will this be viewed?

Same problem as #1, it would be viewed as preferential payments to an 'insider'. Is the debt for the truck in your name ? What about the Title ? If its not in your name in either way, you can't claim the debt as yours.

3) Most equipment I bought when I started was with his money and I've gave him like $2,500 so far will this be viewed under my assets or can he keep the equipment and maybe lease it to me?

Is the equipment in your name ? Any transfer of assets would be suspicious as a fradulent conveyance.

4) I'm a part time college student and running the business also but don't have the cash to even file for taxes this past year. Do I wait to file before I declare Ch. 7 or do it after

Depends. If you're expecting a sizeable refund, I'd wait until after. If you're not getting much or you will owe $$, it probably won't matter.

5 - Sorry, this one I can't answer

6 - Depends on your area what an atty will charge. Filing fees are set by the Feds at $200. Call around and get a couple of free consultations to find out what you're dealing with and what it will cost.

I appreciate you taking the time to help me out. Thank you so much!

[Elmo-1]

I agree with Ladynred on all points but one, and would like to add that if you make any transfers of property or cash to pops, you'll have to wait a year before filing BK.

If you're getting a refund back, its best to file your taxes & spend the money on exempt assets BEFORE filing BK. If you file your taxes after BK, the trustee will take the return as part of your estate. He has 180 days after you file to do this. If you file BK within the next 2-4 months, that'll be one of the first question he asks at the 341.

[Ladynred]

Elmo, what point don't you agree on ? I told him that any transfer of property could be seen as a fraudulent conveyance and so shouldn't do it and the same for any payments to his father.

BTW, Trustees CAN go back as far as THREE years looking for transfers of assets, though typically its only a year.

The tax refund thing seems to be dependent on how much you'll get back. Plenty of people posting who say that they've gotten refunds of under 2K and were allowed to keep the money, so its not a forgone conclusion that the refund will be forfeited.

[Elmo-1]

The point was in reference to filing tax returns when you expect a refund. If you want to be sure of keeping it, file Ch7 AFTER receiving the refund & make sure its spent, preferrably on exempt assets. Then there's no chance of loosing it, or what you spent it on.