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Single member llc personal bk means test

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    Single member llc personal bk means test

    Hello out there i'm planing on filing my Bankruptcy chapter 7
    Iv'e done all forms myself ,I'm self employed.
    I have a small cleaning company LLC ,with less then $100 in supplies
    The company is just mainly labor no real inventory
    It has no real value i guess my real questions are.

    Do i have to fill out means test if my gross income from llc
    is less then the median income for my state?
    just kinda of confused with part 2 of line 3 gross wages,salary,tips
    bonuses,overtime,commission

    #2
    You pay yourself a salary or something? You just fill out Form B22-A/C just as if you would do for any other employer!

    If you are saying that you are a "non-consumer" filer and not subject to the means test, then you would check the box indicating as much... and be done. Otherwise, and I repeat myself, just fill out the form normally.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    I am not an attorney. Any advice provided is not legal advice.

    Comment


      #3
      If you operate as an entity (LLC) your "income" for means testing purposes is as follows for the 6 full months prior to filing:

      1. Wages if any;
      2. Draws or distributions; AND
      3. Payments made out of the entity's bank account that was for your personal expenses.

      Many folks use the entity bank account as their own, paying things such as auto, mortgage, groceries, doctors, insurance etc. Anything that was paid by the entity that was purely for your (or your family's) benefit is "income" for means testing purposes. You need to carefully review all entity bank statements for such expenditures.

      Des.

      Comment


        #4
        Trustees are even smarter than I thought. While I would have thought about salary and draws, I never thought about other tangible benefits such as "fringe benefits" such as car payments, meals, etc! (The fact that you mention groceries as well just tickles me in my funny places, Des!)
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        I am not an attorney. Any advice provided is not legal advice.

        Comment


          #5
          Originally posted by justbroke View Post
          Trustees are even smarter than I thought. While I would have thought about salary and draws, I never thought about other tangible benefits such as "fringe benefits" such as car payments, meals, etc! (The fact that you mention groceries as well just tickles me in my funny places, Des!)
          It is very common for people to use their entity checking account to pay their personal expenses. It's a very bad idea and jeopardizes a main purpose of forming and LLC, but I see it all the time.
          LadyInTheRed is in the black!
          Filed Chap 13 April 2010. Discharged May 2015.
          $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

          Comment

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