Are You Self Employed?
If you are self employed, you will be required to submit additional financial information so that the Trustee may evaluate your Chapter 13 plan. You will be considered self employed if you do business as:
- “S” Corporation, where the debtor is a shareholder/employee
- “C” Corporation, where the petition is a shareholder / employee
- Rental property owner/ Landlord
- Partnership
- Operate business as a sole proprietor
Additional information required of self employed debtors include:
- Tax returns for the last three years which reflect the business, (1040 schedule C, or complete 1120 S or 1120 Corporate returns)
- Balance Sheet of all assets and liabilities as of the date of filing the Chapter 13 petition
- Income statement projection on how the income listed on petition schedule I was calculated
Additional information may include bank statements, rental contracts, lease contracts, or all other relevant information deemed necessary in order for the Chapter 13 Trustee to complete a financial review of your business operations in order to determine if payments into the plan can be made as proposed.
The Trustee is a fiduciary and must investigate business affairs of all Chapter 13 debtors pursuant to 11 USC Section 1302(c), 11 USC Section 1106(a)(3), 11 USC Section 1106(a)(4).
Self Employed Questionnaire
Notice
This information is not meant to convey legal advice to an individual seeking Chapter 13 bankruptcy reorganization, but is meant strictly as an educational tool.
