Good information here but I have a couple questions

[wow]

Brief summary,


Unfortunately I've joined the group of ,I have no choice.

Filed chapter 7 Nov 2nd this year. 341 scheduled attentively Dec 10

I'm over whelmed with CC debit keeping my head afloat in these economic distressful times in addition wife lost her job 1 year ago Jan. My small company is surviving but I've taken a 50% cut in pay in order to keep things striving. Although my LLC is listed as a asset it is NOT included in my BK case and is financially sound,for the moment.

My first questions is as I'm sure there will be more is:

I've done the pre- counseling and now preparing to do the post counseling. My income is 'variable' ,spouse is fixed (unemployment) should I leave my income at the present number ,although fell short of a balanced budget by $900 dollars or should I report that I can NOW balance my personal budget, does it matter?

My assumption is that they are going to 'balance' my budget or make suggestions accordingly and is it subject to trustee scrutiny IF my budgat does not balance?


On edit: I pretty much just threw a number in when doing the pre-counseling ,should have done more homework ,I do take more than reported in this case.

[justbroke]

I've done the pre- counseling and now preparing to do the post counseling. My income is 'variable' ,spouse is fixed (unemployment) should I leave my income at the present number ,although fell short of a balanced budget by $900 dollars or should I report that I can NOW balance my personal budget, does it matter?

Bankruptcy, at least for Chapter 7, is a snapshot in time. It's your State of Financial Affairs at the time you filed. You may be asked if your financial condition changed, during your 341 Meeting, but you do not need to update your paperwork.

My assumption is that they are going to 'balance' my budget or make suggestions accordingly and is it subject to trustee scrutiny IF my budgat does not balance?

This is too subjective to really give a good answer. It will be up to many factors including, but not limited to, whether you're over-the-median, have near or over $100K in unsecured debt, or have raised other flags (like trying to claim 401(k) contributions or loans as expenses in a Chapter 7).

On edit: I pretty much just threw a number in when doing the pre-counseling ,should have done more homework ,I do take more than reported in this case.

There's a difference between the "counseling" course and your actual case! Hopefully, your case paperwork matches your verifiable income (pay stubs, bank accounts, Federal tax returns, etc.).

[wow]

Bankruptcy, at least for Chapter 7, is a snapshot in time. It's your State of Financial Affairs at the time you filed. You may be asked if your financial condition changed, during your 341 Meeting, but you do not need to update your paperwork.

This is too subjective to really give a good answer. It will be up to many factors including, but not limited to, whether you're over-the-median, have near or over $100K in unsecured debt, or have raised other flags (like trying to claim 401(k) contributions or loans as expenses in a Chapter 7).

There's a difference between the "counseling" course and your actual case! Hopefully, your case paperwork matches your verifiable income (pay stubs, bank accounts, Federal tax returns, etc.).

Basically this is only for the counseling as if I should address my income.1 assume the post counseling is all about money managment and budgeting. Since I unfortunately under stated my income by mistake I thoght that in order to expidite the process I should report to them (same company I used for the pre) the change.

I have a attorny who is handeling the case and my business is legit . I have a CPA who does my tax returns and run Quick Books and have provided my attorny all information that has been asked for. I have asked questions referancing my income as my tax returns ,actually don't match my wages (owners draw) and profit losses ,but as explained to me ,I believe it's before all losses and right offs. Therefore my income on my tax returns are low. This is a very gray area of my understanding. Most people don't want to pax taxes,right?

I do have over 100K in unsecured (joint) debt . In addition I'm the sole member of my LLC.

It's really a mess but I have NO choice.

[Blueboy]

I may be wrong as I'm new to this journey myself but as I understand, your LLC assets may be taken by the TT unless you can exempt them.

Good luck!

[wow]

I may be wrong as I'm new to this journey myself but as I understand, your LLC assets may be taken by the TT unless you can exempt them.

Good luck!

From what my attorny has 'said' it is in the exempt column but we know how that might go.

One never knows.

I am VERY conserned to say the least about my business. One other thing is accounts receivables. Hopefully they adjust for monthly expenditures and outstanding debits.

If not they will litterly put me on the streets. I CANNOT lose my business.

[wow]

I will add to Justbroke that I'm not over-the-median in income.

[Blueboy]

From what my attorny has 'said' it is in the exempt column but we know how that might go.

One never knows.

I am VERY conserned to say the least about my business. One other thing is accounts receivables. Hopefully they adjust for monthly expenditures and outstanding debits.

If not they will litterly put me on the streets. I CANNOT lose my business.

I have a small S-Corp and my case sounds similar to yours, if they mess with the business I guess I'll have to move into a campground as it is my only source of income for me.

Good luck

[justbroke]

From what my attorny has 'said' it is in the exempt column but we know how that might go.

Single-Member LLCs can be interesting. Of course, this depends on the Trustee's thirst (or hunger) for assets, but since you're a single-member, the Trustee can step in your shoes as the Member and do whatever s/he pleases. I'm not an attorney, but I really don't see how you exempt your ownership interests in a single-member LLC. I hope that you included the ownership interest on your Statement of Financial Affairs (SOFA).

[frogger]

If your LLC has no assets and is virtually worthless to everyone except you, then there shouldn't be a problem. If it not like this, then take the time to make it so.

You've got an LLC. You should know how the game is played.

[wow]

If your LLC has no assets and is virtually worthless to everyone except you, then there shouldn't be a problem. If it not like this, then take the time to make it so.

You've got an LLC. You should know how the game is played.

Very much so and in reality it's value is me. Although I have equipment ,only asset, most is inoperative and or not in sellable condition. One piece there is a note on and one leased. I should of had a UCC filed on my LLC and there would be NO worries. How late is to late to have a UCC filed? The individual holding the note and equipment (single lien) is a long time associate. He has no worries with me for repayment.

I had 5 employees (laid off now for over a year) there is only my secretary and I left.

Hoping for the best

[marie]

what is a UCC ?

[wow]

what is a UCC ?

A UCC records and protects a party's interest in the collateral offered by a debtor for a loan.

In other words a lien on your company for a debit owed that is documented in your state. So in this case if 30K was owed then it would have to be setteled in order to sell off any assets. Just like a lein on a house,boat,car,motorcycle,etc.

A lien

[ForTheBest]

Basically this is only for the counseling as if I should address my income.1 assume the post counseling is all about money managment and budgeting. Since I unfortunately under stated my income by mistake I thoght that in order to expidite the process I should report to them (same company I used for the pre) the change.

Hi Wow,

No worries on the pre-discharge course. I took mine Fri. night at 50-30-20.com (because it was the absolutely cheapest approved one I could find). There are no numbers to plug in at all; it's strictly general budgeting/money management advice.

My pre-filing course cost me $50 at another site but, thanks to posts I read here on the forum, I switched sites for the pre-discharge course and it was only $14.95. (My lawyer said it was fine to use different sites for the "pre" and "post".)

[StartingOver08]

If you have filed your BK already, which you did on Nov 2, it is too late to file a UCC for the debt owed to your "long time associate" (also called an 'insider' according to BK lingo). How long have you been paying your associate for the note on the equipment?
This note payment may interest the Trustee.

The amount of your A/R on the filing date will definately interest the Trustee. According to my attorney, business expenses could not be taken out of the A/R due on the filing date. Please contact your attorney and get clarification regarding this aspect of your personal BK filing.

[wow]

If you have filed your BK already, which you did on Nov 2, it is too late to file a UCC for the debt owed to your "long time associate" (also called an 'insider' according to BK lingo). How long have you been paying your associate for the note on the equipment?
This note payment may interest the Trustee.

The amount of your A/R on the filing date will definately interest the Trustee. According to my attorney, business expenses could not be taken out of the A/R due on the filing date. Please contact your attorney and get clarification regarding this aspect of your personal BK filing.

I have yet to set up repayment terms believe it or not since 07.

I would have to assume my A/R would be subject to deduct 'current ' accounts payable not future. For instance I am caring the loan on my A/P.

For example,

My A/R shows $34k and my A/P shows $46K. This is a negative in my eyes,but what do I know.

There is a lot of faith in my attorny not to allow me,leave me, to be pantless in the end.