Can I set up a corporation while in a personal ch13 bk?

Business 3 views 3 answers
I have just filed my Ch13 and was looking to start my own business. My thoughts were to start a corporation under my partners name as president and me as an employee and rollover my 401K into the corporation to use for purchasing assets for the corporation.

Attorney Answers

3
James Desposito ·
You have a number of moving parts in your plan. If you are not a shareholder in the corporation, will the 401K funds be loaned to the corporation? Or is this a situation where your "partner" is acting as a placeholder for your ownership of shares? Is the new corporation going to establish a 401K plan into which your existing funds will be invested? Who will act as plan manager and will the new corporation's stock qualify as a suitable investment? What impact will those transactions have on the Chapter 13 plan? You should consult with experienced Business, Bankruptcy, and Tax Attorneys to establish a structure to suit your goals.
0 upvotes
Fred Isquith ·
Bankruptcy counsel is essential here
0 upvotes
Benjamin Soffer ·
Your question pertains primarily to bankruptcy law. To further assist you, I am reclassifying it to the bankruptcy category, so that attorneys knowledgeable in that practice area would be more likely to see it and respond further.
0 upvotes

People Also Asked