Will the income from my business be included in my personal chapter 13 bankruptcy? 14 Answers as of January 08, 2011

My name is listed as an owner of a factitious name (used as the DBA) and on the bank account of a business but I am not an owner of the corporation. Will that companys income be considered mine in the filing of my personal chapter 13?

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Mankus & Marchan, LTD
Mankus & Marchan, LTD | Tony Mankus
If you did not derive any income from the business, you should not have to report any in a Chapter 13 bankruptcy. However, the facts are not clear regarding your name being on a bank account of the business. Consult with a bankruptcy attorney.
Answer Applies to: Illinois
Replied: 1/8/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
If it is in fact a corporation, then the only income you would include is income you receive from the corporation. Your interest in the corporation, however, must of course be listed as an asset and valued. This may affect the amount you have to pay out in the chapter 13.
Answer Applies to: California
Replied: 1/3/2011
Law Offices of Juan Dotson
Law Offices of Juan Dotson | Juan Dotson
I certainly hope you do not plan on filing this bankruptcy yourself. You will have a lot of explaining to do (see Carballo Law office). Your name is on the business and bank account. Hire an attorney today.
Answer Applies to: California
Replied: 1/3/2011
William C. Gosnell, Attorney at Law
William C. Gosnell, Attorney at Law | William C. Gosnell
Yes, such income will be included within your bankruptcy.
Answer Applies to: Tennessee
Replied: 1/3/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Income from YOUR business is included.
Answer Applies to: California
Replied: 1/3/2011
    Greifendorff Law Offices, PC
    Greifendorff Law Offices, PC | Christine Wilton
    Legally you are the owner. All income and expenses are part of your bankruptcy estate. You'll have some explaining to do.
    Answer Applies to: California
    Replied: 1/3/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    The court is going to look really closely at why you say you are not the owner if your name is on it.
    Answer Applies to: Virginia
    Replied: 1/3/2011
    Christopher Legal Group
    Christopher Legal Group | Shawn Christopher
    If you do not own the business, then you should not have to include the income as part of your income in the Chapter 13. That said, why is your name listed as the owner if you are not the owner? If you are not the owner, then have your name removed from the bank account and taken off of the business filings.

    Are you listed as an owner of the business on the company's tax returns? If so, then you may have a hard time to prove that you are not the owner. If you are the owner, then transferring your ownership interest would need to be disclosed on your Statement of Financial Affairs (part of your Bankruptcy filing). Without knowing all of the details, the situation you describe seems a little suspicious and could create unintended problems. If things are as you say, then you may be fine, provided that you can document that you are not the owner and have not recently transferred your "ownership" of the business.
    Answer Applies to: Nevada
    Replied: 1/2/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    If you do not receive the business income, you are not entitled legally to the income and the corporation does not belong to you then you do not have to include the income from the corporation in the bankruptcy case. However, you will have to disclose the bank account in your name and the fact that you are listed as the owner of the business. Make sure you disclose everything in the bankruptcy petition and schedules. You will have to prove that you are not legally entitled to the business income or the assets of the corporation and business. Since you are on the account and your name is being used for the business you will have a lot to explain to the trustee, creditors and maybe the tax agencies such as the IRS and Franchise Tax Board among others even after the bankruptcy case. There is a presumption that that you are entitled to property and the income from that property in your name. It is going to be up to you to explain and prove you do not actually own property in your name as when you are holding it in trust for someone else in secret. Good luck... you need an attorney who can prepare the case and have all the evidence available before filing.
    Answer Applies to: California
    Replied: 1/2/2011
    DiManna Law Office, LLC.
    DiManna Law Office, LLC. | Dawn DiManna
    If you do not receive income and do not have an ownership interest in the company then it should not be included.
    Answer Applies to: New Hampshire
    Replied: 1/2/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Yes. If thebusiness is yours or you have any interest in it, that income will be considered your income for purposes of a Chapter 13.
    Answer Applies to: California
    Replied: 1/2/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    If it is not your income, it should not be used but the issue will be explaining/proving it is not your income.
    Answer Applies to: California
    Replied: 1/2/2011
    Law Office of David P. Farrell
    Law Office of David P. Farrell | David Farrell
    You will need to list all of your income received from any source in your bankruptcy petition, including income from the operation of a business. The fact that the business is a corporation makes no difference.

    You should contact an attorney, like me, to further discuss your particular situation.
    Answer Applies to: California
    Replied: 1/2/2011
    Law Offices of Lady Justice
    Law Offices of Lady Justice | Mona Patel
    No, only your income proved by paystubs is included. Not the corporations income.
    Answer Applies to: California
    Replied: 1/2/2011
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