self employed and filing bk - questions

[tkinster]

We live in KY. We are looking at filing ch 7. Does anyone know how it works when you are self employed? I have a regular job but my husband has his own business-sole proprietor but organized in ky as an llc. Our attorney has gave me a list of what I need to get together, etc. One of the papers I have is to list our monthly income etc. How should I do that for his income? The attorney told me that in KY an llc was a corporation and that it wouldn't have anything to do with our individual filing. But he doesn't get wages or anything like that from the business he has a drawing account where he takes money out after jobs are done. If anyone has any ideas or suggestions, I would really appreciate it. Thanks in advance!!!

[tkinster]

Another question-maybe someone will have an idea about this one. We have got 2 debts that are lines of credit for supplies we bought for the business. One even has a promissory note signed by each of us. Do you think these would cause any problem with the bk? They are both in the business name but we are on paperwork as standing for it. We are both listed -name & ssn - on the promissory note the other has my husband and his ssn listed, but neither are showing on our credit reports

[FloridaGuy]

You'll need to include business info

We have an S-Corp for which I am the only owner/shareholder. ALL of the business income and expense has to be included in the BK paperwork, even if you are only filing personally. Especially if you have a promisary note as you stated.

[mardigras]

I'm filing Chapter 7 and I own a sole-proprietorship. All my attorney said I needed were 6 months of all bank statements, business and personal, and a 6 months of profit/loss statements from the business. I'm nervous as hell -- and my attorney is not someone who will hold your hand through the process. However, his firm only deals in bankruptcy -- it's well respected firm. My business owns nothing -- it is a car lot, everything is owned by my floorplanner -- trying to reaffirm with them. I own nothing -- no house, I rent. I own a car which is valued at about $500. (1984 Mercedes 300D with 400000 miles). All the debt I need to deal with is unsecured credit card mostly. But, I'm nervous as hell because my business accounts have a good bit in and out. But that is me selling cars and paying them off. My profit/loss shows me being under the median income. I'm just afraid of what they will do with my business checking account. Any advise is appreciated.

[StartingOver08]

FloridaGuy is right. If you are a sole proprietor or you are the sole owner of a LLC, then the company is an asset to you (the individual). If you are filing personally with a lot of business debt then your filing is a little more complex and usually you need to provide a longer history than 6 months. For example, I had to provide 4 yrs tax returns, 2 yrs bank stmts, 3 yrs cc stmts, 10 yrs mtg apps, deeds etc.

If you have receivables as of the filing date - BE CAREFUL. I had to provide 100% of the receivables to the trustee (even as they come in they belong to the trustee). That is 100%. You can not even take out business expenses.

In my case, I have to shut down the corp and then start a new one to continue doing business. If I kept the old corp the business lines of credit and credit cards can sieze my bank account after my personal discharge (get a judgement against the business, sieze the business account). In order to prevent that, I have to close the old corp.

Talk to your attorney about your specific details