I have one payment left until I can file my chapter 7. I was recently invited to join in on a business adventure selling jewelry. Would I be able to partake in this business plan, and have income coming in, or would that stop me from filing chapter 7.
You should discuss this with your attorney. Especially focus on the means test, Schedules I and J and the requirement for disclosing increases in income which you expect, and whether you will become an "owner" of equity in the business or something else (like a multi level marketing business, for example). Assets in your possession at the time of filing must be disclosed. Since you are talking about Chapter 7, I assume you posted in Chapter 13 by mistake. Either way, discuss with your attorney before filing, not after.
I am not your attorney unless you and I have signed a retainer agreement. What I am saying is not legal advice. Do not act on this information without engaging my services, this is for consideration only.
You probably won't have any problem. The means test, which determines whether you can file a chapter 7, is a six month look back at income. Schedule I is your current income and you can make notes about changes. Just make sure you attorney knows everything so he or she can properly prepare your petition.
Now is the time to file rather than waiting until you have consistent income (we hope) from your new job/business venture. You will need to disclose this new business on your schedules and statement of intention, but it should not cause you problems with filing, assuming you do not have to invest a bunch of cash. It sounds like you have an attorney, make sure you fully disclose this new venture and good luck!
DISCLAIMER: This message is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this message. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area. I am a Federally Designated Debt Relief Agency under the United States Bankruptcy Code. I proudly help people in financial need file bankruptcy cases. IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).
The question is it depends. I know most people don't like hearing that, but any income or assets you receive prior to the filing date must be included in your income calculations and listed as personal property on your Chapter 7 Bankruptcy. In Chapter 7 the court gives you a certain amount of exemptions, these fluctuate state by state and if you are going to be put on the name of a business as a percentage owner, then you may be over on your property exemptions depending on the value of the business assets and your percentage (assuming they are not encumbered with a lien). Likewise, you cannot make an unlimited amount of money and qualify for a Chapter 7, the court looks at your current monthly income on Schedule ! and your current monthly expenses on Schedule J, and if your income increases such that you have $300 or more leftover after paying your living expenses the court may try to force you into a Chapter 13 Bankruptcy where you have to repay your debts in a plan that last 3-5 years. The best thing for you to do is wait until after you file your case to partake in an business venture just to be on the safe side, unless you have discussed this with your attorney and he has given you the green light to go ahead with the venture. Honestly, the best policy is to always discuss these matters with your attorney rather than coming on Avvo and seeking answers from attorneys who don't know the facts of your case in their entirety. Best of luck to you.
I think the responses to this are good. I see the issue of income and asset ownership has been raised and need to be handled. Another issue I may have missed is the transfer of assets. If you are paying money, giving a security interest, or giving some value to get into the business, the trustee could try to recover the value you give. That issue should be discussed with an attorney as well.
The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. This information is not meant to be legal counsel, it is general information, and should not be used to make a final legal decision. Readers should seek their own attorney to handle their legal matters. Confidential or time-sensitive information should not be sent through this form.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline