Independant Contractor & EIN

[IvoryAngel]

In regards to filing Chapter 7 I am an independent contractor and also have a EIN number. How does having a business bank account affect if at all?

Currently I just have a general bank account and a deposit card (Netspend) and thats it. I need to open a business checking though as I am not taking out for taxes. Is this a good idea going into filing bankruptcy. Any advice would be greatly appreciated .. Thanks!

[crazycat]

..business advice

...From what I've been directly told by BK attorneys and what I also have done,do not have any significant balance in the account on date of filing...In addition, If any of your dischargeable debt is connected to account and/ or is business related, then it best to close account and open another with a new DBA...

[BK2008]

And if you do happen to have some $$$ in the account, you might want to think about doing an estimated tax deposit to cover your tax liability and SE taxes on your IC income. Most IC's are required to do so. This is a legit expense that if questioned, can be backed up with supporting documentation, especially if you pay your taxes via EFTPS.