New Procedures for Sole Proprietorships in Chapter 7 Cases in Fresno and Bakersfield

On behalf of Macdonald Fernandez LLP on Wednesday, July 10, 2013.

On July 2, 2013, Chapter 7 Trustees James Salven, Trudi Manfredo and Peter Fear announced new procedures they will follow in administering sole proprietorships in chapter 7 bankruptcy cases filed in Fresno and Bakersfield, California. Specifically, the Trustees will promptly move for an order authorizing them to shut down the business until the case is closed. The debtor may avoid shutting down by demonstrating that all property used in the business is exempt, offering to purchase the non-exempt equity in the property (and paying a deposit), or filing a motion to compel abandonment. It is important to fully analyze a debt it's assets and understand these procedures before filing a chapter 7 case in Fresno or Bakersfield.