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    Question about my income

    I have a c-corp that I pay myself from. (I pay the payroll taxes etc like a true employee)

    I know the means test is based on the last 6 mos of income.

    I paid myelf in Nov of '07 the last time. I will pay myself again in a week or so.

    IF I FILED NEXT MONTH, I WILL BASE MY INCOME FOR THE LAST 6MONTHS NOV - APRIL. SINCE I DID NOT PAY MYSELF IN DEC AND JAN, WILL SIMPLY ADD UP THE LAST SIX MONTHS AND FIND OUT WHAT THE AVERAGE IS PER MONTH?

    IS THAT OK? WILL THE TRUSTEE REQUIRE TO SEE SIX MONTHS OF CONSECUTIVE PAY?

    #2
    Hmmm....I have a paycheck twice a month, but also get bonuses every three months. So, in looking back on 6 months worth of paychecks, two bonuses were in there as well and had to be included in the total that was the 6 month average.
    Filed 12/20/07 [X] 341 meeting 1/15/08 [X] Trustee Declines to Dismiss 2/25/08 [X] DISCHARGED AND CLOSED 03/19/08 [ X ]

    Comment


      #3
      Since you are essentially self employed, (you pay yourself), odds are, they are going to ask you for 2 plus years of accounting records anyway; so trying to "play" games with the 6 month rule requirement is probably not going to matter much in the grand scheme of things.

      How much do you actually earn in a year...do you take any other money out of the corp. that you don't list as income, do you use the corp. accounts to pay personal expenses?

      If you haven't already, you should take advantage of the free consultations offered by most BK attorneys, and I would suggest hiring one only because that BK cases receive a higher level of scrutiny when the debtor is essentially self employed and/or has a business.

      Comment


        #4
        Thanks for the reply. I started paying myself in '06. When I couldn't afford to take a paycheck I didn't. When we bought our house I started taking pay again. Pretty regularly for the note.

        They probably will look back a couple of years. I was concerned about the income in order to complete the means test questions.

        Thanks for the reply.

        Comment


          #5
          In case of people who own c-corp or S-corp, but filing only personal bankruptcy, beside tax returns, and bank statements, what other accounting record they might need?

          What make a trustee to ask for more than 2 years of records?
          Last edited by ejny65; 03-06-2008, 06:39 PM.
          I am NOT an attorney, anything I say here is not a legal advice.

          Comment


            #6
            HHM, In case of people who own c-corp or S-corp, but filing only personal bankruptcy, beside tax returns, and bank statements, what other accounting record they might need?

            What make a trustee to ask for more than 2 years of records?
            I am NOT an attorney, anything I say here is not a legal advice.

            Comment


              #7
              I believe it's due to an owner or principal having direct control of corp funds etc etc.

              Comment

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