I was hoping to avoid this situation, but it looks like it may be inevitable. Can anyone offer a suggestion?
-filing in Texas, using Federal exemptions
-I'm currently employed, making roughly $2500/month average, it's a commission job and the pay fluctuates
-wife works part-time as a contractor, making roughly $500/month, hers is hourly and also fluctuates
-well over $100K in debt from old business that we shut down last year, all personally guaranteed
I have a separate business, set up as a sole proprietorship, that I work on nights and weekends. My P&L for June-December shows a net loss due to overhead. During that time I've been working on a long-term project for a client that's almost finished. We're planning to file before the end of the month, but that project may be complete before the filing date. When the project is done it'll be a $5000 invoice.
I know that if the invoice is sitting there as accounts receivable then it's gone, so I either need to not invoice it until after the filing date or hold off filing until I've been paid (which should be quick). I guess the big question is, would that extra cash be a problem? Looking at a P&L from July through January, if I were to invoice $5000 today I'd have a net profit of about $3000. Spread over 6 months that's only $500 a month so we're well under the median, but then we have $5000 in a bank account somewhere. There's enough room in our homestead exemption to cover that amount but it seems like that could be an issue happening so close to filing. If I invoice that a few days AFTER filing, wouldn't that be suspicious? Could the trustee question it at the 341? I really don't want to go on a $5000 spending spree, I'd be much happier putting most of it into an emergency fund somewhere.
Suggestions? Thoughts?
-filing in Texas, using Federal exemptions
-I'm currently employed, making roughly $2500/month average, it's a commission job and the pay fluctuates
-wife works part-time as a contractor, making roughly $500/month, hers is hourly and also fluctuates
-well over $100K in debt from old business that we shut down last year, all personally guaranteed
I have a separate business, set up as a sole proprietorship, that I work on nights and weekends. My P&L for June-December shows a net loss due to overhead. During that time I've been working on a long-term project for a client that's almost finished. We're planning to file before the end of the month, but that project may be complete before the filing date. When the project is done it'll be a $5000 invoice.
I know that if the invoice is sitting there as accounts receivable then it's gone, so I either need to not invoice it until after the filing date or hold off filing until I've been paid (which should be quick). I guess the big question is, would that extra cash be a problem? Looking at a P&L from July through January, if I were to invoice $5000 today I'd have a net profit of about $3000. Spread over 6 months that's only $500 a month so we're well under the median, but then we have $5000 in a bank account somewhere. There's enough room in our homestead exemption to cover that amount but it seems like that could be an issue happening so close to filing. If I invoice that a few days AFTER filing, wouldn't that be suspicious? Could the trustee question it at the 341? I really don't want to go on a $5000 spending spree, I'd be much happier putting most of it into an emergency fund somewhere.
Suggestions? Thoughts?
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