What does personal/ business bankruptcy protect you from as far as whats under your name, personal assets, and what they can and cannot touch, seize, garnish, lawsuits, and or anything of that nature?
What does personal/business bankruptcy protect you from as far as whats under your name and assets in the State of Virginia? No debt just need to get out of lease due to lack of business.
Depends on the State.
In Texas, the creditors can take everything except your house and 1 car.
In Indiana, the creditors can take everything that they are able to sell, which is pretty much everything.
So as you can see, bankruptcy doesn’t "protect" anything. BK is for people who are 50,000 or more in debt, and have no assets to pay their debts.
Where BK becomes useful is when a business fails, you can usually walk away from bank loans that are for the business only, and keep you personal stuff. So long as the business was kept in a legal separate entity such as LLC. Sole proprietor is not a separate entity as you would use your SSN for the business instead of obtaining a TIN for an LLC.
