Tax Queston

[Ann]

I'm self employed because I work out of my home. Last year when I began my business I had a ton of start of costs. I actually didn't make any money and my income was adjusted for that. Now, my business is much better but since I haven't paid any taxes as of yet for this year how will they figure that if I qualify for chapter 7???

[eddiep]

Your attorney will probably just use the standard tax withholding % for your tax bracket.

[StartingOver08]

Ann, do you have an attorney?
You will need to supply not only your proof of income, but proof of expenses as well. When you have a small business and you file personal BK, the business is considered one of your assets. Is the business incorporated or a sole prop? Do you have debt in the business name that is guaranteed personally? Is it a business that could not exist without you?(that is a good thing BTW)

When you have a business you have to supply much more information for a longer period. You may as well get all of your financials together from the time you started the business to discuss with your attorney so the right approach can be taken to make sure you can qualify for the Ch 7. It can be done, its just a little more detailed than the usual BK filing.

[music12]

alternatively, if your business is picking up, maybe you won't even need to file bk.

[Ann]

No way is the fact that my business is picking up going to EVER pay back what I owe!

[music12]

oh, ok! just a thought

you never know - some people turn into millionaires after filing bk...