Here's a story... of a lovely..

[fooked]

[DeadManCrawling]

Couple thoughts.

This is a very detailed post, which can be good, but also can be intimidating to others.

I will answer one specific thing:

Forming a new business entity: You will need to declare your interest in this hen you file, which could lead to questions. Or not. Depends.

I understand the need to do so, as I am also a business owner. I am not sure that a new business popping up in the weeks/months leading to BK would go unnoticed.

Glad to have you here (well, you know what I mean).

Welcome.

-dmc

[frmrdwn]

Hi Fooked,

I am new here and mine is a fairly straightforward ch 7, but there are many who have been in your shoes. I am sure they will chime in eventually.

It seems like you are fine paying on your student loan as that can't be discharged in a chapter 7 anyway. But, I am not so certain about paying it down in a huge chunk. How do you usually pay on it? If it were me, I would only make the minimum payments for now, so as to not raise any red flags.

My atty told me to list all debts, including family members, dentists and yes, accountants. I was told that it would look like preferential paying (is that a term?) if I paid one, but not others. Especially, relatives. Those were fun conversations.

At any rate, after the bankruptcy is discharged you may choose to repay whomever you want. Bankruptcy or no, my sister is happy to know she will actually see the money she loaned me last summer. Not so sure what Uncle thinks, but at least I will be able to make good on the loan after discharge.

There has been discussion on the boards about whether or not to tell our orthodontists, doctors, tax people and etc. that we are filing when we have an outstanding debt with them. It seems to me that it's best to be honest and make good on the debt later, but that's just me.

Don't know a thing about business or rentals. The universe is better for that.

[StartingOver08]

Welcome fooked!

I can answer a couple of your questions: 1) Have the funds from the IRS refund deposited into another account - NOT the BOA account. I assume the new account has no debt associated with the bank in which you hold the account. (A neutral bank/cu).

2) You are allowed to pay the IRS whatever you owe, even on the eve of BK - just make sure the check has cleared the account prior to filing. The IRS is priority debt so you can any as much as you can all the way up to the day before filing - as long as the funds are out of your account on the filing date.

You may be able pay your accountant for preparing your taxes by using the contemporaneous exchange defense if the Trustee challenges the payment. Or you may just want to not take the risk and pay less than $600 to the accountant for his fee and let him know you will pay him after the filing, voluntarily. Discuss this with your attorney.

Can you wait to open your business until after your 341? It might make the entire process that much easier for you.

Ask your attorney about paying the student loans down just prior to filing. This is an excellent idea since they are not dischargeable in the BK, but I don't know if this would be considered preferencial or not. Maybe JustBroke or one of the others on here can provide a better answer relative to your student loan debt.

[fooked]

First, thank you for your replies!

DMW- sorry about being so detail oriented, but I've read in other threads where some didn't provide enough information, and wanted to be as thorough as possible

I wasn't looking to hide anything with the business. I'm looking at an S corp for tax purposes. I'm the type of guy who would get caught if I hid anything, which is why the dirtbikes and small ATV will be disclosed. There aren't titles on them (you can't title an off road vehicle in NV), but to me it's just not worth the risk of getting caught.

And thanks for the welcome! Yes, I know what you mean.

frmr- thanks for your support!

Starting - I should have signed on this forum a week earlier, as it's going to the BoA account via direct deposit... I have been monitoring the IRS website daily to see when I can expect it... I want to have that money in and out before the bank knows what's going on...

As for what I owe the IRS, I'm not behind on any past taxes, just the estimated tax payments for 2009.. I'm trying to figure out exactly what I'm supposed to send (I know it's 15.3% for FICA/Medic/etc, but have to plan for income taxes too). I can't see the trustee going after the IRS as a preferential payment, but who knows?

Thanks for the info on the accountant.. that's what I was concerned about. It's not his fault I'm at where I'm at. I actually told him I needed them done in order to file, so he has some idea.

As far as the business, ideally I want it to begin January 2nd, so that I don't have to file two tax returns for this year.. so yes, I was going to wait until after my 341 anyway to have the papers filed, but I am concerned about the income I do have during the interim and how to spend it wisely. My receivables are running 60-90 days late and I had a productive month last month...

[LuciluS]

Here is an IRS Website that may be of assistance in determing your taxes for 2009.

Scroll down to: Employment Taxes and review that Section. If you need further help scroll down to: Independent Contractor (Self-Employed) or Employee?

Once you have an estimated time of arrival on your Federal Tax Deposit into Bank of America, immediately go to the bank and draw out those funds. Are you set up to view BOA website for your business and personal accounts? If not, sign up just in case the IRS website maybe down (happens sometimes I know!) I would make it a Priority to get to BOA when the doors open to remove those monies.

Unless, you have any outstanding checks, personal or business, then tell the Teller or CSR after you have pulled the monies out of your account, you want to close those accounts. They usually want a reason why? That's up to you what to say. If I were in your shoes, I would just say Moving. I didn't say 'I'm moving' so it's not a white lie....Moving just means you are moving the accounts.


Remember, if you leave any $$ in an account Bank of America may have the right to pull funds from your accounts. I like to cover my rear. That's why I said pull all monies from BOA. After reading threads on this forum, Wells Fargo and BOA are not friendly banks.

Good Luck

Luci


Open an account at a local bank for personal and business checking in which you Do Not owe any monies to that bank (i.e. Credit Card, Line of Credit, Stop all ACH's you may have set up).

[fooked]

Thanks for the links Luci!

Yes, I have online banking with BoA... there's just over $100 in there now.. I just don't want them to continue to draft the HELOCs, mortgages or credit cards, since there won't be any money in there...

I agree with you that it would be best to close the account, but I'm concerned about the pending refund.. According to the IRS website, it could delay the refund by 10 weeks if I close the account... decisions decisions...

I've had another personal account for years with different bank that I don't owe anything to... I'm using that one from here on out.

Now I just have to find a bank that will do the business account, but not until I find out when I can legally start the account without too many hiccups...

[fooked]

does anybody have any more advice for me?

[LuciluS]

I was re-reading your original post and just want to clarify one item.

You can get a FHA loan 2 yrs. After the deed of the foreclosed home has changed from your name to ____________. It's not the date of your Chapter 7 Bankruptcy. The time spread between the two (dischare & transfer of deed) could be up to 2 years and possibly longer than that.

I just the Business Section of our State newspaper this morning, Foreclosures & Bankruptcies in the US have hit a Record. What does that mean? Banks, Mortgage company, loan company & even the evil credit card companies are swamped. So everything is going to get behind.

Also read where the State had hired 125 extra people in the Disability Department of our State Government. Whew, glad I got mine in 2006. Still peeved I had to pay an Attorney $7,400 out of my SSD back pay and had to pay taxes on that amount also. He did one thing. Used a ford, typed 2 sentences and signed his name. I did all the work bugging my Senators & Congressmen to help me. 17 months later after filing, got approved.

[fooked]

sorry you had to go through that Luci... and you're right, I was vague in my initial post... it's two years after the property's been deeded to somebody else...

I'd kinda like to start the S corp now to save me on some taxes... but we'll see how it works out...