Worried about

[ejny65]

Hi, I am a self employed with 80K personal debt all credit cards. I am considering chapter 7 and my only assets are cars and business ( and its not much) How far back they can go back into the tax returns and business and personal checking accounts? Does making money before filing and making all the payments more than minimum goes against me?
I am also worried my selp employement would make personal bankruptcy more dificult. what is there is a flaw in books or business tax return. Do they look into the business books as well? thanks for your help.

[rivercityatty]

I am also worried my selp employement would make personal bankruptcy more dificult. what is there is a flaw in books or business tax return. Do they look into the business books as well? thanks for your help.

A trustee certainly will look into your business books and yes, since you own a business and are self employed, your BK potentially could be much more complex. Issues could arise related to valuation, assets, accounts receivable, income etc.

IMHO, it is often best to have an attorney and CPA involved if you own a business and plan on filing for bankruptcy.

-- RCA

[HHM]

On average, when a business is involved, you can expect them to want to see records for at least 2 years, but usually no more than 4 years.

It really depends on the nature of the business, the amount of debt trying to be discharged, etc.

[PaKettle]

I told my attorney that my business was very small (truth) - that I made no money the first 2 years then made like $200-500 the 3rd year but closed it at that point anyway (a year ago) because it just was more trouble than it was worth and I lost easy access to my product at wholesale prices.

Anyway, I told my attorney that I did not keep very good records, the best records I have are my tax returns, I didn't keep ledgers or anything. (I know: bad, bad!) My attorney said that it should be alright that I don't have a lot of records since my taxes show the story, that I made basically no money on it.

I have not yet filed the amended petition (the attorney forgot to put that I had a business on my petition and I had to tell the Trustee about my business at the 341). But hopefully I won't be asked for records I don't have! All I really have are receipts showing some sales, receipts showing some purchases, and my tax forms! Think the Trustee will be okay with that?

Anyway, my attorney said he thought it should be okay since the business was Sooooo small. (One reason I quit it was because my tax guy said that if I kept claiming it as a business the IRS might get involved, saying it was really just a hobby and thus not qualified for deductions.)

[ejny65]

Pa, how did it go with 341 on Dec 10? and may i ask if 99K unsecured debt was business or all personal debt, were they all credit cards?