Question on check cashing before filing a chptr 7

[Lexy1969]

I received some checks for contract work and the company that paid them to me hasnt reported this to the IRS as they dont even have my social. They will just get it at year end and 1099 me. My question is if its not disclosed on my bk paperwork and I have been cashing these at the bank of the company writing them to me. Will this be found in the bk procedure? I know I will disclose this but I was just wondering if it would be possible for them to see that I was cashing checks and be able to trace it back to a past employer? Thanks

[AngelinaCatHub]

I understand you stated you will report this. Please do. If not, and this is found out by other means, your case is likely to be dismissed for possible fraud in hiding funds. Does the income bring you above the means? Aren't you using the income for needs not wants? You are probably fine. Above all, be honest and the Court will work with you. If not honest they can be quite tough. 'Hub

[Lexy1969]

It would put me just under the means test. What Im afraid of is I collected unemployment for a month while receiving this income. Since I have to disclose both Im afraid of what could happen. I guess I would just have to pay it back?

[whipster1]

Since you are a independent contractor, you can subtract your expenses in the means test.

[CatsInTrouble]

highly doubt it will be found. BK courts are flooded. they'd have to bother to go looking for it.

[Trixie007]

It would put me just under the means test. What Im afraid of is I collected unemployment for a month while receiving this income. Since I have to disclose both Im afraid of what could happen. I guess I would just have to pay it back?

You should report that yourself to correct the unemployment payments you received - no sense in even taking a chance of messing up your unemployment AND your bankruptcy! They would probably just have you pay it back according to the proper calculations, but that would also extend out the time that you would receive your benefits. A win-win in my book, as you can be above-board and reap the benefits of both programs.

[music12]

i agree with trixie. call the unemployment office, tell them what happened, say something about it being a mistake, and ask to correct it by paying back (or by them taking it out of any future unemployment checks). unemployment fraud is serious! people who get caught are regularly prosecuted.

maybe actually you need to talk to a lawyer before you confess this.

are you saying they will get your social at year's end and then report it?? if so, you HAVE to act now; unemployment's computer will automatically catch you. so you'd better tell them right now. but talk to a lawyer first, could be dangerous.