Why do they ask about self employment within 6 months of filing?

[hopefulbk]

I read that this is a common question in the 341 meeting. How far back do they want receipts and bank statements? My husband is the furthest thing from organized and I'm trying to gather the paperwork. I want to file in July but since he just got a referral job in early March, my husband thinks we should wait until mid-Sept. Now, even WITH his income we are still very BELOW the median income needed for Ch. 7 in our state.

[hopefulbk]

Anyone with any idea?

[justbroke]

I read that this is a common question in the 341 meeting. How far back do they want receipts and bank statements?

It depends on your case and your Trustee. They will tell you what they want. The reason they ask about self-employment income, is because many people "hide" this income so that they are under the median. It's hiding assets, and the Trustee doesn't like that.

My husband is the furthest thing from organized and I'm trying to gather the paperwork. I want to file in July but since he just got a referral job in early March, my husband thinks we should wait until mid-Sept. Now, even WITH his income we are still very BELOW the median income needed for Ch. 7 in our state.

Even if you are below, the lookback for the Trustee on self-employment income will still be there. The key is always, are you hiding income.

[ansky0007]

We had to submit 12 months of both our business & personal checking accounts and 3 years of tax records. Also we through we did not have to give any data past our filing date but they also requested current bank statement through and past our 341 to see if business has changed after filing.

[hopefulbk]

We had to submit 12 months of both our business & personal checking accounts and 3 years of tax records. Also we through we did not have to give any data past our filing date but they also requested current bank statement through and past our 341 to see if business has changed after filing.

Thanks.. I have only been able to find 8 months worth of statements so I have to get on the phone and make sure I have at least a year.. I also have my last 2 years taxes but I can't find the 3rd year? We weren't married 3 years ago so I guess we each have to find our forms or request them from the IRS. That sounds like FUN

[JoeBankrupt33]

I was selected for audit, and for that, they wanted 6 months of self employment records and a description of each and every transaction. I did have self employment income on my tax return, but none of it was from the previous 6 months, thank goodness. I definitely didn't keep good enough records for the audit.

Just something you should be aware of.