Self- Employment

[sisterfunkhaus]

I am self employed as a home childcare provider. I do not have a business account. I just deposit my paychecks from each parent into my personal account. How will I prove my income in bankruptcy? Will they just go on my deposits to my bank account? I tried to find the answer in the NOLO book, but couldn't find anything specific about what documentation I need.

[nomore$$]

I was in the same boat as you.
My attorney just had me give him the past 3 years tax returns and my schedule c's.
The 341 was a breeze because I was prepared from reading so much on this board and had an attorney I trusted.
This was all right before the new laws though.

[confusedinVA]

Hello, I am also a home childcare provider. I filed chapter 7 pro se and had our 341 September 11. I used the receipts that I wrote out to the parents and nothing else was requested. The trustee has already asked that he be relieved of his duties and for the case to be discharged. Looks like the receipts were good enough.

[sisterfunkhaus]

I've only been doing this since 2005 and don't write receipts. I was a teacher for four years previous. My parents give me a form to sign so they can get reimbursed from their work childcare plan, but I don't get a copy. My bank account deposits are my only records besides my tax returns. I guess bank deposits records and tax returns will have to be good enough. It sounds like from ya'lls experience that there are several different forms of "proof" that might be viable to a trustee.

I really appreciate the replies. You guys are so helpful

No More$$$--what's a schedule c??? I have a preparer who does my taxes and am pretty ignorant as far as that stuff goes.

[nomore$$]

Schedule C is a profit and loss statement for your business. My accountant has always done this for me every year and the attorney wanted it for the trustee along with my returns. I thought all self employed people get this, but I'm not sure.

[sisterfunkhaus]

I'm sure I'll get one. I JUST now gave her the info for my 2005 taxes. My husband filed and we are amending our 2005 return. I honestly had no clue how to do business taxes so I just waited until I found someone specialized in childcare taxes. So, this is actually my first return. I should get everything back in the next two weeks. I'll ask her about schedule C.

[tradewiz50]

Hello, I am also a home childcare provider. I filed chapter 7 pro se and had our 341 September 11. I used the receipts that I wrote out to the parents and nothing else was requested. The trustee has already asked that he be relieved of his duties and for the case to be discharged. Looks like the receipts were good enough.

A trustee is paid on bankruptcy's he can actually collect assets off of. A chapter 7 no asset case gives him no incentive and 9 out of 10 times he recommends a discharge to the attending judge.