Filing chapter 7 due to no income

[Cali]

I can understand the payroll and all that. I used to have a business that was a sole proprietorship. But reading the OP's post, she only registered the name, she never actually started the business. So how can you claim money that you never intended on making.

Actually, Cali, you can. Whether you're operating off of investment capital or actual income, part of your business expenses is always going to be payroll. If you own the company, you'd be at the top of the list. Whether it's a formal payroll setup or just money you set aside for your living expenses, if you run it through the company it's still a paystub.

To be honest, I am not familiar with the differences between sole proprietorships, LLCs, and other business structures, so there may be limitations I am not aware of based on that particular business model. But in the end, if your income comes through the business -- whether the business makes any money or never has -- it's still a paycheck. If it was money you kept in your personal bank account that you never commingled with your business funds, then it's not, it's just your savings. It all depends on how you set up your business finances.

I'm sure someone else could give you more details, but that's my understanding of it, anyway.

[FreshLikeADaisy]

I can understand the payroll and all that. I used to have a business that was a sole proprietorship. But reading the OP's post, she only registered the name, she never actually started the business. So how can you claim money that you never intended on making.

Personally, I do not believe she "claimed" money she never intended to make. People generally don't start businesses so that they can fail utterly, lose their life savings, and be forced into bk. Maybe I'm wrong, but that is my general belief. I don't know her well enough to not give her the benefit of the doubt. Sounds like she provided some sort of future earnings estimate to Cap1 to get approved for the car loans; if she truly believed she would be making that money at the time she provided the estimate, I don't see the problem and honestly, wasn't thinking along those lines at all.

My statement was solely to address how someone could be considered an employee of a company and receive a paycheck, even if that company never made money, which was the way your original question was phrased. My apologies if I misunderstood.

[chrisandsarah]

Thank you for your information. We will go ahead and file this week and hopefully we are out of it soon.

We will keep 1 car from cap1, we will reafirm it and we will also keep 1 small credit card from capital one also and we will file for the rest of the debt.

What is that only meeting I have to go about? the court date, some people say it goes pretty fast?