Hi there,
Thank you for this forum. It has been very helpful. We have about $50,000 in debt after a series of major home repairs combined with a large income loss (I own a business that made about 40,000 this year and so far only 11,000 this year.) So far we are not behind on any bills. We have had enough savings to manage, but now that has run out and we cannot pay the minumums with our current income.
I have a few questions:
1. I belive we will qualify for CH 7 based on the income test if they look at the last 6 months income. For a self employed person, can a profit and loss statement prove 6 months of income? if they use last year's income on my tax statement it will be too high.
2. Is it the last 6 months from when you file? Do they look at income between your filing date and the discharge date? It looks like that takes about 4 months. If my income increases over that time, will it push us into CH 13? I started a second business that is increasing my income (but not nearly enough to pay the minimum payments)
3. Last and most importantly, if I file for bankruptcy, how will it affect my businesses? Some of the debt is from the businesses. If that is wiped out, does that mean I have to close the businesses? That is not really an option, as one of them especailly is my only source of income.
Thanks!
Thank you for this forum. It has been very helpful. We have about $50,000 in debt after a series of major home repairs combined with a large income loss (I own a business that made about 40,000 this year and so far only 11,000 this year.) So far we are not behind on any bills. We have had enough savings to manage, but now that has run out and we cannot pay the minumums with our current income.
I have a few questions:
1. I belive we will qualify for CH 7 based on the income test if they look at the last 6 months income. For a self employed person, can a profit and loss statement prove 6 months of income? if they use last year's income on my tax statement it will be too high.
2. Is it the last 6 months from when you file? Do they look at income between your filing date and the discharge date? It looks like that takes about 4 months. If my income increases over that time, will it push us into CH 13? I started a second business that is increasing my income (but not nearly enough to pay the minimum payments)
3. Last and most importantly, if I file for bankruptcy, how will it affect my businesses? Some of the debt is from the businesses. If that is wiped out, does that mean I have to close the businesses? That is not really an option, as one of them especailly is my only source of income.
Thanks!
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