Means Test

[jb300]

I am currently looking at the means test for my area. I am confused. I am self employed. I am just getting my taxes to the CPA on Wed. to do. As close as I can tell my adjusted gross income will be around 15000, and taxable around 9ish.

My sales for the last year were 139000 plus but by the time you take all my deductions, and I do have the reciepts and documetation to back it up, that is what I end up with.

My BF and I live together and work this together. He draws about an additional 1000 a month gross but also has deductions.

We are not married and I am the one filing. When I start adding in the household expenses, believe me there is nothing left.

I have taxes I have to hold back for estimated taxes through the year and never know what my income will be.

So do I fill out the first part of the means test with my total sales and then go to the second part to justify the business(sole prop) expenses and the household expenses?

Also, I emailed my attroney who I saw last monday with this question and he never answered me back even though he told me to contact him with questions. My BF and I bought the house we are in last June on contract for 25000. I paid 5000 down out of my life insurance and this was a 3 year contract. We have had to gut this house and it is no where close to done. I don't even have a bedroom or kitchen yet in the house. I sleep in an old camper next to the house.

There is little or no equity in this old rundown house yet. We are both listed on the contract, but late last year BF deeded it to me since it was my money in it but he is still on the contract and will be until it is paid for. I forgot to mention that part of this contract when we were with the attroney. He said since I had bought the house after I had some of my debt that I might have to pay a little toward the equity of the house if there was any.

I am wondering though since BF name is on the contract if that is really what will happen.

thanks for any infor you can give me

[JRScott]

You probably need to see 3-4 additional lawyers.

I'm not up much on business bankruptcy though. You probably need someone well versed. The Sole Prop I know would be an asset if you are filing personal bankruptcy, if it is a business bankruptcy then you don't even fill out the means test from what I understand.

[jb300]

Why do you say to see additional attroneys? This office specializes in BK and I had been recommended to them. Am I missing something here?

Also this businees is not inc. and the credit cards used were personal not business. I know I don't file separate taxes for the business because it is a sole prop. I am personally responsible.

[StartingOver08]

Stay away from the BK mill type firms!

Why do you say to see additional attroneys? This office specializes in BK and I had been recommended to them. Am I missing something here?

Also this businees is not inc. and the credit cards used were personal not business. I know I don't file separate taxes for the business because it is a sole prop. I am personally responsible.

It does not matter if the business is incorporated or not - it is an asset of yours in the BK estate. That's a good thing if you are discharging both personal and business type debt. If most of your debt is business, then you do not need to fill out the means test.

As to seeing a couple more attorney's - it is recommended on this forum because not all BK attorney's have the experience or desire to work on a BK filing with a little complexity. Those large firms can be BK mills, not all of them, but many are. BK mills generally are not recommended if you have complications - and small business income in your BK is a complication.

If the initial filing is not done right - you are in for a dismissal or a Ch 13. You only get one shot to do it right.

Also, just a note for now, if you are filing a Ch 7 and have tax money in a separate account to pay throughout the year - pay that money to the IRS before you file. Unless the funds fit in your exemption amounts - you can't keep money over your allowed exemptions. The Trustee will take it even if it is "allocated" for the IRS. The only way to make sure it goes where it is suppose to go is the pay the IRS before you file.