Freaking out a little bit!

[kjrmom911]

Ok, so I just got a letter from the trustee which states our case has been identified as a possible business case and we must complete a business examination.. I suppose it is since my husband owns a small business (sole proprietership), but most of our debt is personal. I would venture to say that only about 30,000 of the 125,000 we owe is business debt. The part that I am freaking out about is that we must pay any state and federal taxes on time, failure to do so may result in severe penalties. The fact of the matter is that we have no money to pay our taxes, thats part of the reason for filing the chapter 13, so we can pay it back over time. I will be calling my attorney tomorrow ( I fell like she should have warned us about this on monday), but was just looking for a little reassurance.

[lillymarlene]

I don't know if this will help you, but my c13 was considered a business bankruptcy. I do have a single proprietorship business, too. Maybe that's is something that is commonly done when you own a small business. It actually could work out better, since you may be able to write off your attorney's fees as a business expense.

I'm sure your attorney will know. Good luck.

[Flamingo]

Remember - stress and anxiety at this time are totally normal!!! Your attorney knows your situation and will guide you accordingly. The key word in your posting is "possible."

[despritfreya]

You are not being classified as a "business case" as it relates to a Chapter 7 type analysis. You are self employed. The more correct terminology is that you are debtors "engaged in business" as defined under 11 USC 1304. As such you will be required to file monthly operating reports (P&L statements) and supply some business related information to your Trustee. Your attorney should have explained all of this to you as it is not a big deal and certainly nothing to lose sleep over. Many, many fully or partially self employed folks file bk.

As it relates to your pre-petition tax debt, such will be paid through your Plan. You must remain current in all post petition tax obligations and that requirement has nothing to do with operating a business. It is a requirement for all who file Chapter 13's.

Des.

[kjrmom911]

thanks to all who answered, my attorney of course was not in on friday, but the paralegal told me it was standard procedure for anyone filing who has a business, which after I calmed down I realized made complete sense. I guess the biggest obstacle is that my husband has not been very organized with his business and I have had to do so much already to get everything ready for this bankruptcy. Going through a bankruptcy is stressful enough without adding on other things. Now I get to look for all his bank statements which are probably scattered all around the house. Arrggh..just a little frustrated ))))

[LadyInTheRed]

Just think of the Chap 13 as a good way to force your husband to get organized. The kind of info the trustee will want is info that is wise to maintain when running a business. Always good to keep tabs on how the business is doing. It'll help at tax time too!

[kjrmom911]

Oh LadyintheRed, you have no idea how many times I have said those exact things to my husband. If I did not have my own full time job, plus running a household with 3 kids I would be on top of it all the time. Since we have filed my housework has suffered as I have had to oversee all the organizing that should have been happening all along. Ok, now I am just venting. LOL. On a good note, I did find most of the statements. There are only a few months which he will have to go pay the bank to give him.