Do I include my business income in my chapter 13 bankruptcy? 28 Answers as of August 10, 2011

I am trying to file for a chapter 13 bankruptcy. I have a small income from a business, but its not enough to make my payments on time. Do I have to include this income in the file? Will I not be covered as much if I do?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
You will be required to include your business income.
Answer Applies to: Washington
Replied: 8/10/2011
The Law Offices of Kristy Qiu
The Law Offices of Kristy Qiu | Mengjun Qiu
Yes you have to include this income. If anyone finds out that you have business income and you did not include it, you can be prosecuted for fraud. Filing Chapter 13 pro se is a very bad idea because it's very complicated, 90% of the cases get dismissed. I highly suggest you hire a lawyer.
Answer Applies to: Florida
Replied: 8/10/2011
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
You have to include all sources of income.
Answer Applies to: Indiana
Replied: 8/10/2011
Ursula G. Barrios Law
Ursula G. Barrios Law | Guillermo Machado
Must include all sources of income, including any businesses.
Answer Applies to: California
Replied: 8/9/2011
The Northwest Debt Relief Law Firm
The Northwest Debt Relief Law Firm | Thomas A McAvity
You absolutely must include the income or risk committing perjury in a federal court.
Answer Applies to: Oregon
Replied: 8/9/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    You need to list all of your income and all of your expenses so that an accurate budget and plan can be prepared. It is almost impossible to successfully navigate the Chapter 13 process and get a plan confirmed without an attorney. You should talk to your attorney about the information that needs to be included in your schedules.
    Answer Applies to: Colorado
    Replied: 8/9/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    Of course you have to list ALL income
    Answer Applies to: California
    Replied: 8/9/2011
    Ross Smith, Attorney at Law
    Ross Smith, Attorney at Law | Charles Ross Smith III
    Yes, you must include business income in your 13. You must also describe the business accurately in the Statement of Financial Affairs attached to your 13 petition. Read the questions carefully about businesses. The trustee will almost certainly want tax returns and monthly Profit and Loss statements for the business for all of this year and the entire previous calendar year (2010). If you have additional income, it can increase your ability to pay. Good luck.
    Answer Applies to: Ohio
    Replied: 8/9/2011
    Lake Forest Bankruptcy
    Lake Forest Bankruptcy | Anerio V. Altman, Esq.
    You have to include all income in the case. The question to ask is whether, when including all income, you are able to make the Chapter 13 payment. If not, then your Chapter 13 may not be the right vehicle for you. I don't understand your question regarding whether you will be "covered as much" if you do that.
    Answer Applies to: California
    Replied: 8/9/2011
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    All income is a part of the bankruptcy. The income for a business will need to include gross to net income.
    Answer Applies to: Florida
    Replied: 8/9/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    Yes, you must list all income received in the household on Schedule I. Your net business income must also be included in the means test also.
    Answer Applies to: Michigan
    Replied: 8/9/2011
    Ethan Myers Law Firm PLLC
    Ethan Myers Law Firm PLLC | Ethan Myers
    Yes you need to include all income. but that can be a good thing. In a chapter 13 plan, future disposable income is used to make payments on previous debts (the debts you had before filing bankruptcy). In order for your plan to be approved by the chapter 13 trustee, you need to be able to show that you have enough income left over after paying your monthly expenses such that you can pay off the plan in 3-5 years. note: depending on the plan, some creditors are not paid in full. The more income you can legitametly show available for your plan the better your chanced of getting your plan confirmed (approved).
    Answer Applies to: Texas
    Replied: 8/9/2011
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    You need to consult a knowledgeable and experienced Chapter 13 attorney and provide him or her all the facts of your case so that he or she may give you a complete analysis. Nevertheless, the keys in bankruptcy are honesty and the related concept of transparency. If you have income from a business, you must disclose it. Also, your petition and plan must show that you have sufficient income to support yourself and your family plus make the monthly plan payment you promise to make. At the end of the day, for payments to unsecured creditors, you will have to turn over to the Chapter 13 trustee whatever is left every month for 3-5 years after you pay your reasonable expenses, including your mortgage payments, payments for arrears or late property taxes, and living expenses. For some debtors, that means that their plan payment is just in excess of $100 per month and that will discharge up to $360,000 in unsecured debt. However, putting together a Chapter 13 petition and plan is not a simple task and you would be well-advised to invest the money on a qualified attorney as it may save you much more in the long run.
    Answer Applies to: California
    Replied: 8/9/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    You have to include all income, all debts and all property in the Chapter 13 petition regardless of the amount. If you cannot demonstrate that you can make the plan payments and pay your living expenses then the plan is not feasible and will not be confirmed. That means the case will be dismissed or you can convert it to a Chapter 7 case.
    Answer Applies to: California
    Replied: 8/9/2011
    Melinda Murphy Dionne, PC
    Melinda Murphy Dionne, PC | Melinda Murphy Dionne
    When you file a bankruptcy case, you must disclose all of your income, all of your debt, and all of your assets. The business income would have to be disclosed as would your ownership interest in the business.
    Answer Applies to: Alabama
    Replied: 8/9/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    When you file your case, you must list all of your income from all sources. So, if you have business income in addition to other income you must include it.
    Answer Applies to: California
    Replied: 8/9/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    First, don't do this without a lawyer! If your business is incorporated, everything is separate. Otherwise, it.all goes in the same pot. There are so many nuances possible in your case that you'll cost yourself dearly w/o counsel.
    Answer Applies to: Virginia
    Replied: 8/9/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Your question makes it apparent that you are trying to file pro se (BIG MISTAKE). You need a lawyer. The failure to list ALL your current and past income is a crime - perjury - which can land you in jail for up to 5 years and also will prevent confirmation. Uneven income presents problems in formulating a plan making a lawyer especially critical. Since you operate a business, most trustees will require supplemental disclosures from you throughout your case.
    Answer Applies to: Georgia
    Replied: 8/9/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    You must list all of your income. Failure to do so is bankruptcy fraud.
    Answer Applies to: California
    Replied: 8/9/2011
    Law Offices of Sheryl S. Graf
    Law Offices of Sheryl S. Graf | Sheryl S. Graf
    You are required to disclose your income from all sources, including any business that you operate. No matter how small that business is, you should provide a current profit and loss statement (gross earnings, less business expenses = net business income). If you reasonably anticipate any changes to your income, you should disclose that as well. The extra income will not keep you from filing a Chapter 13, but you are required to disclose all of your income.
    Answer Applies to: California
    Replied: 8/9/2011
    Srai Law Office
    Srai Law Office | Gurjit Singh Srai, Esq.
    You must include all income even if it is nominal. All income from whatever source derived is considered in the bankruptcy petition, specifically schedule
    Answer Applies to: California
    Replied: 8/9/2011
    Lewis Adams and Associates
    Lewis Adams and Associates | Lewis P. Adams
    The bankruptcy Code requires that you disclose all sources of income. If the business has income that you net after expenses, your schedules must show the income.
    Answer Applies to: Utah
    Replied: 8/9/2011
    Eric J. Benzer, Attorney at Law
    Eric J. Benzer, Attorney at Law | Eric Benzer
    Yes
    Answer Applies to: Maryland
    Replied: 8/9/2011
Click to View More Answers:
12 3 4 5 Free Legal QuestionsConnect with a local attorney