Our company loaned us money for 2 months last year (Nov & Dec). We have not yet paid it back or begun making payments on it.
We own about 66% of our C-Corp that made this loan to us. Do we have to count the loan as income on our means test?
Thanks for the feedback guys. Unfortunately we can barely afford the filing fees let alone the attorney fees. That said, we don't treat our biz like a "cookie jar". We file taxes on time every year and engage in no co-mingling of funds, etc., etc. We cannot pull money from our company that we did not earn to pay the expense of the personal bk. The company is its own operation with other shareholders, etc., and we've already borrowed money as I've stated. The loan is a fully documented note with interest, a payment schedule, etc. It is a loan per our corporate accountant. But I'm concerned that since we haven't begun making payments and that it was the only revenue we received personally for 2 months "opinion" might throw it out as a loan & try to call it income.
Family Law Attorney
Interesting questions. I would say, yes, it is income. More signifcantly, WHY are you trying to handle a bankruptcy without an experienced attorney?
Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662. Please be aware that each answer on this website is based upon the facts, or lack thereof, provided in the question. To be sure you get complete and comprehensive answers, based upon the totality of your situation, contact a local attorney who specializes in the area of law that involves your legal problem. Diane L. Gruber has been practicing law in Oregon for 26 years, specializing in family law, bankruptcy, estate planning and probate. Note: Diane L. Gruber does not represent you until a written fee agreement has been signed by you and Diane L. Gruber, and the fee listed in the agreement has been paid.
Social Security Lawyers
Before you self-inflict irrevocable damage, let's examine your strategy. While the caring and knowledgeable attorneys of Avvo can provide accurate information about the law and legal procedure, this forum is ill-suited to managing the conduct of a specific case. You own a majority interest in a corporation and God only knows how many other issues that could become very costly in a bankruptcy. Very little is black and white in a bankruptcy, and there is no guarantee that you even now the right questions. Put another way, the bankruptcy process is amenable to planning opportunities. Nothing short of personalized advice and representation by experienced bankruptcy counsel will meet your needs.
Bet wishes for a favorable outcome, and please remember to designate a best answer.
This answer is offered as a public service for general information only and may not be relied upon as legal advice.
2 lawyers agree
Chapter 7 Bankruptcy Attorney
I agree that you need to hire an attorney. I have done a number of personal bankruptcies for small business owners and what you said in a few short sentences brings up a whole bunch of red flags. A loan is not income, but there is no guarantee that what you did was a loan or that it would look like one to the US Trustee. If you are discharging primarily business debt then there is no means test requirement anyway. Also keep in mind that if you treat your business like a cookie jar you are compromising the liability protections of your business.
3 lawyers agree