BK 13 Means Test Self Employed now needing a w-2 job...

[janland]

Hi- I have been self employ for 40 years. I was advised by my atty that the court likes to see "stable" income- so go get a job. In order to mold the income requirement to the formula for passing the means test, where can i go to sniff out such a document or formula??. right now, not knowing how much I need to earn is creating a heavy burden mentally. I want to do this right anf the face the 5 year pay back correctly. I want to file in the next 20 days.

thanks All

[momofthree]

If your business is successful, and you want to continue it rather than finding a w2 employer, then you need to find a bk attorney who specializes in self-employed individuals.

[despritfreya]

Hi- I have been self employ for 40 years. I was advised by my atty that the court likes to see "stable" income- so go get a job.

What???????????????????!!!!!!

So long as you can pull enough money out of your business on a monthly basis to make the required Plan payments you are fine. Who ever heard of dumping 40 years of hard work in order to file a Chapter 13? That's garbage. Self employed folks file Chapter 13s all the time. The only additional requirement you, as a self employed debtor, will have, is a requirement to file a Monthly Business Operating Report (basically a P&L statement) so that the Trustee can track your income and thus the feasability of the Plan.

Find another lawyer.

Des.

[newbegin]

I totally agree, we were/ have been self employed and went through 5 years of chapter 13. They were very scrict with our reporting etc.but we did it.
You need to get a differant attorney.

[janland]

BK ATTY For Self Employed

wow- this has been niggling at me for months! THANKS to all. This totally makes sense...

how would one go about finding such a specialist? They seem to not represent themselves very honestly - I have gotten wierd advise from so many while checking my firm out.

Jan

[busby]

You might not need to find a lawyer that specializes in self-employed cases - although that wouldn't hurt.

You might want just to find another lawyer that understands your situation. I am self-employed and never thought that would be an issue (which it wasn't). The attorney, as far as I'm concerned, treated this just like any other case.

Since you've been self-employed for forty-years, you can obviously make a living doing what you do so I would just find another lawyer. Have you asked the current lawyer why he made that request to find a "real" job?

[LadyInTheRed]

wow- this has been niggling at me for months! THANKS to all. This totally makes sense...

how would one go about finding such a specialist? They seem to not represent themselves very honestly - I have gotten wierd advise from so many while checking my firm out.

Jan

Keep going to free consultations until you find somebody experienced with Chap 13 who you are comfortable with. Specifically ask about their experience with self employed clients in Chap 13. One thing you can try is searching the State Bar website for certified BK Specialists in your area. If you don't find a certified specialist in your area, don't worry. The lack of the certification does not mean they aren't a good attorney. You can search for California attorneys at http://members.calbar.ca.gov/fal/Mem...ber#searchlink

[keepsmiling]

I am curious as to how they determine numbers for self employed folks... since your income may very well not be steady-- I assume they take some kind of average??? Do you have to keep making adjustments on a monthly basis? Would love to hear from those who have been through it and Janland, what your new attorney says.

[despritfreya]

I am curious as to how they determine numbers for self employed folks... since your income may very well not be steady-- I assume they take some kind of average??? Do you have to keep making adjustments on a monthly basis?

We look at the average and estimate what the future will bring based upon any expected increase or decrease in revenues. So long as the monthly operating reports, over time, are close to the estimate, the Plan is feasible. If the monthly average is substantially more then payments can go up, if less, feasability is an issue.

The monthly payment does not fluctuate based upon that month's income, however, if I know that the business is seasonal, I may set the Plan payments to fluctuate based upon anticipated seasonal revenues. For the most part I tell my clients that they are to put away the extra money from the good months to help with the bad ones, that way Plan payments stay at one level.

Des