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View Full Version : looking at BK- what to expect

moneymess
08-23-2007, 07:09 PM
First and foremost- I want to say thank you for responding and providing any and all insight- this site has been very helpful over the past few weeks. We have an appointment to meet with an attorney to discuss our options for BK this weekend. Just wondering what to expect with the new laws. I am a 1099 employee and my YTD income on my "paystub" is much different than my actual end of year income on my taxes- how does that work. I figured I can take last years taxes, this years "paystub" as well as profit/loss statement YTD. Also in my dealings with UCB collection agency this past week- the collector repeated told me that based on my CBI we would not qualify for BK (this was before we were even thinking about it btw) - I can't find anywhere that we would be disqualified based on our situation- I realize that we may be forced bk13 over bk7 but is there any validity to his statement? is there a reason we would not "qualify" to file BK? thanks for the time and input.
willingtocope
08-24-2007, 04:50 AM
No reason that you shouldn't qualify. Being paid on a 1099 may complicate the income validation. I assume by "big difference between pay stub and taxes", you mean that, after "expenses" and "employer's portion of FICA, etc", your actually spending net income is significantly less than your gross billing. If that's the case, you may have to justify some "business" expenses, but, it shouldn't be too hard if it passed the IRS.

Are you incorporated? Do you actually pass the IRS rules for "independent contractor"? Not that it matters BK wise, but it may have some bearing on your income situation.
LadynRed
08-24-2007, 10:52 AM
Also in my dealings with UCB collection agency this past week- the collector repeated told me that based on my CBI we would not qualify for BK
They are so full of crap - don't believe a word of it. If a CA is talking - he's lieing !
Methuss
08-28-2007, 06:02 AM
They are so full of crap - don't believe a word of it. If a CA is talking - he's lieing !

Not only that, but just in telling a consumer such a thing, the CA violated the FDCPA and committed an unauthorized practice of law. They are not bankruptcy lawyers so in giving you "advice" that you would not qualify, they just gave you "legal advice" without being a lawyer. Big no-no.

Representing themselves as attorneys by giving legal advice... oops.
Giving legal advice when not a lawyer... oops.