Letter from Trustee today

[road warrior]

Ok, to make a long story short.
I filed Ch. 13 Jan. 08. 341 meeting was in March. Plan confirmed April 25, 08.

Anyhow - I have a lawn mowing business that I do part-time after my full-time job. This is a VERY small business, makes me around $300/month, which I report on my income taxes.

Today the mailbox had a letter from my trustee that reads as follows -

"According to information provided in your petition, your Ch.13 case has been identified as a business case. As a business debtor you will be required to provide this office with monthly profit and loss statements, beginning with this month and monthly thereafter. The profit and loss statements are due within 30 days of the end of each month. Also, please forward a copy of your federal income taxes yearly after their completion.

During the course of your Ch.13, it is your responsibility to pay any state and federal taxes on time. Additionally, it is your responsibility to obtain and maintain comprehensive liability insurance for the operation of your business.

If you have borrowed money from any creditor and as security or collateral for the loan you have pledged accounts receivables, rent, or other cash, you may not use those assets without express written consent from the creditor or an order from the court. Failure to obtain creditor consent or an order from the court before using these assets may result in severe penalties."

OK, now I could understand if I had a business making money year round that amounted to something. BUT, I mow freaking lawns in the warm months and barely bring in $250/mo. AFTER expenses!!!!! Now, if the trustee is going to require me to have insurance ($300/yr.), then why should I even bother with this business anymore??

Anyone else have this problem??

I'm so sick of the government red tape and bureaucracy I could just rip my hair out.
My wife was laid off just before Thanksgiving, she's been jumping through hoops trying to get T.R.A. aid for schooling,(which is a government scam - NAFTA product), and unemployment just paid up today.

[Bandit]

I'm so sick of the government red tape and bureaucracy I could just rip my hair out.

It is a big load of crap but the trustee is just doing his job.

It is just a freaking lawn mowing job and around here that only lasts for about 5 months.

Well, maybe get insurance for it just to get through it & report a complete loss since that seems to be what they want to hear
Then do the same thing on your taxes.

I dont really know what I would do with that because it is so petty. Just enough to pester & annoy. Makes you wish you would never had mentioned it and were only trying to be honest.

I wonder if you quit *hint hint* the mowing job for now, then maybe you could qualify for lower ch13 payments or a 7(?) & get rid of the business 13? hmmm

[justbroke]

On the liability side, you are required for most businesses (I know for Florida), to carry liability insurance. You should have this anyhow if you're entering people's property and/or touching people's property. It's just smart.

If the business doesn't generate enough income to cover basic liability insurance, then maybe it's not worth being in business. Forget the government requiring insurance.

I actually think business liability insurance should be compulsory just like automobile insurance.

If you came on my property and damaged 1/2 acre of Saint Augustine sod... who would pay for the 22,000 square feet of new sod... where 300square feet installed, is like $600? (Price includes sod and labor on a lawn with irrigation and old sod to be replace, re-graded, disposed of, cleanup.)

Since you're in Bankruptcy already, you can't just discharge a liability claim (post petition), so the Trustee is actually trying to protect you as well as your customers.

[Bandit]

Since you're in Bankruptcy already, you can't just discharge a liability claim (post petition), so the Trustee is actually trying to protect you as well as your customers.

but what s/he is getting isn't worth the headache to go any farther with the part time work. That in junction with making the 13 payments really makes it a complete waste of time.

This is why so many people quit their jobs just before filing.

[justbroke]

but what s/he is getting isn't worth the headache to go any farther with the part time work. That in junction with making the 13 payments really makes it a complete waste of time.

This is why so many people quit their jobs just before filing.

I'm empathetic, seriously.

Additional burdens placed on self-employed persons can make it really difficult, so it seems.