Question by Jimmy V: Can I sell my online business before filling bankruptcy?
I got an online business, but it’s not registered. It’s not really a business I guess. But I make money off of it. I live in Oregon. Or would this be against the law? Can I sell it to anyone? Can I sell to my friends or family? Or would the judge think that I am selling it and they will give it back to me?
Answer by dusty_titus
If any of your current debts (listed in the BK) include any items that you charged to your business name (registered or not) perhaps “advertising” or office supplies or computers or anything in the name of the business, the judge will ask you what are you doing with the business – and if you say that “I sold it your honor” then the judge will ask you what you did with the proceeds, and they will require that you relinquish the moneys you received from the business, to pay a percentage of the receipts for dispersal to your creditors. Do nothing with the “business” until your bk is finalized.
Know better? Leave your own answer in the comments!