You started your own home remodeling company a few years back. It’s now fallen on financial hard times. You don’t want to close your doors, but you do want to use bankruptcy to restructure your debt. You’ve learned a lot and identified early financial mistakes, and you are convinced that the business is absolutely viable with the right structure.
At the same time, you’re worried about declaring bankruptcy and losing the assets that you need for the business. You’ve invested thousands in saws, power drills, sanders, generators, laser levels and many other valuable tools that you cannot do renovations without. Are you going to lose them?
Necessary tools for your craft have special protections
The good news is that the tools of your trade are likely protected in bankruptcy. There are limits as far as value is concerned, but you can generally declare the items you actually need to do your profession exempt from the bankruptcy process. You get to keep those tools and keep moving forward with your company.
Why is this done? The government’s goal, in allowing you to use bankruptcy, is to provide you with a fresh start. They want you and your business to succeed. Taking your tools would run counter to that goal and force your business to close. Bankruptcy is focused on helping businesses succeed, not running them into the ground, so you don’t have to worry.
How to start the bankruptcy process
Do you have any questions about this process as you get started? We would be happy to answer them and help you explore all of your options.