Of course you can, you will likely just face a few more challenges in calculating and projecting your income than the typical wage-earner who has regular paychecks. If you are truly self-employed, meaning that you have not created a separate business entity (LLC, PC, etc.) for the business, then you are subject to the same Read More »
Yes, so long as you qualify for bankruptcy. How long you have been in your current position of employment is not relevant to your ability to file for bankruptcy protection. Your new income, however, is extremely relevant. There are two places in the bankruptcy petition where income is disclosed, the Current Monthly Income Analysis and Read More »
Your employer will only know that you filed for bankruptcy if you have a reason to let them know. If you have an ongoing wage garnishment, or if you enter into a voluntary payroll deduction order in a Chapter 13, then you will have to notify your payroll department of the bankruptcy filing. Your payroll Read More »
No, bankruptcy will not affect your paycheck or future wages. The only exception to this is if you elect to file for Chapter 13 and elect to have the trustee payment automatically deducted from your pay and sent to the trustee. For the record, I strongly recommend this as an option, as it all but Read More »
The starting point in answering this question is yes, all income of the household from all sources needs to be included in your bankruptcy petition. Income from a non-filing spouse needs to be included in both the Current Monthly Income Analysis and the Schedule I projection of average monthly income moving forward. Some income can Read More »
Most sources of income must be listed and disclosed in your bankruptcy petition. There are several very specific exceptions within the Bankruptcy Code: All other income must be disclosed and included on the bankruptcy petition. There are two places in the bankruptcy petition where income is disclosed, the Current Monthly Income Analysis and Schedule I, Read More »
Co-signers (aka co-debtors) on debts in bankruptcy must be included in the bankruptcy petition. There is a separate schedule provided to list them, Schedule H. They will receive notice of the bankruptcy filing and have the right to participate in the case if they elect to. While such participation is rare, it is usually ugly Read More »
Yes. When you hold an asset that is secured by a debt, the lender is provided with different treatment, and you have different options as to how to treat them in bankruptcy. Once the lender has recovered the property through a repossession or foreclosure, however, their treatment in bankruptcy is dramatically simplified. The lender is Read More »
Tax liabilities are complicated outside of bankruptcy. Put bankruptcy into the mix and they become even more complicated. That said, there are some general rules regarding discharging taxes in bankruptcy, commonly referred to as the “3-year, 2-year, 240 day rule” by bankruptcy professionals. This is a three-prong test of tax liabilities and all three prongs Read More »
Generally speaking, yes, bankruptcy can eliminate most past due utility bills and service shut offs, but there are some exceptions and variables that must be considered. First, it must be determined if the utility in question has a statutory lien against the property. In many municipalities, the local water utility will have a statutory lien Read More »