Ok, I have a question. I work full time, me and hubby are under Chapter 13 and have made 3 payments to date (out of 36 as of our 341 meeting). Our confirmation hearing is in March. We only have unsecured debts included in the Ch 13. My question is - and I did ask this to my attorney and he said it was fine, but just want a general opinion -. I would very much like to freelance (work on copywriting assignments) to have some extra money, mainly to have some extra income in case something happens, or to start saving for a down payment on a new car or home once we're discharged. How will this work (or not) with the Trustee? I don't want to hide anything from him, but I also want to be able to have some money for a rainy day or for the future. I don't plan on leaving my FT job - at least not for now. And what if I decide to be self-employed? How will that affect my plan? THX!!!
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This will depend on the trustee, and the case. There isn't a 'one size' approach. Go w/ what your attorney says.
Keep track of your expenses... Will come in handy for tax time!Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision. -
My attorney said "go for it"... as long as that extra money is not overwhelmingly big. If my estimates are right, I could sell my services for $1000 a piece of writing (at least this much a month), so I'm not sure. That, however, is my passion, my "dream job". My attorney is really helping us deal with this situation and he seems very supportive so I truly hope he is right this time and this won't cause us any problems. My attorney also said it's ok to go away to another state of something if we wanted to, as long as we don't use any credit card (whiich we obviously don't). Anyways... I will give it a try. I won't try to conceal anything, but I want to have some extra cash. The trustee might see this extra money since I would be reporting it on my income tax, right? Thanks for the advice, though.Comment
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When my wife and I started our ch 13 I told our attorney about the tons of OT I get, and about the side jobs I take on. He told me that If I made an enormous amount of OT, the trustee could, in effect make us increase our monthly payments, "depending on her mood" As for the under the table side jobs, shhhh....
I had been taking on extra work on my days off driving a truck for my in-law's demo&hauling company, and he puts me on his payroll, which in turn is reported to the IRS of course. Attorney said again, depending on Ms. Trustee, she sees a second income, ie a second job, that I didn't disclose, then look out, they may come sniffing for more dough a month. Basically he told me to "lay low on the second income" and don't make 50 grand in ot. Me thinks the trustees and bankruptcy gods are a bit tough in Gotham City?
So providing I scrape and paint and pound shingles, under the table, getting paid with greenbacks, then everything is rosey.
Sure hope the trustee isn't breezing through the fourms, or I'm in the saucepot.
TonkaTruckComment
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On the bright side, your taxable income from it would be less. You would be able to deduct a % of expenses for your home (utility, rent or mortgage) if you have an area that you use exclusively for the work. Then, if you had any licensing/fees, advertising, supplies, etc. It may not be huge-but it would adjust the end figure.
Originally posted by JGGRMost of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.Comment
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That's true... I know it will take a few months for my freelancing to really take off - hopefully I can make this my business once I'm discharged (another 33 months - Urrh!!!). Thanks everyone!Comment
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