Bankruptcy for Self employed debtors
Self-employed debtors filing for bankruptcy can supplement the Schedule I reporting of their monthly income with a monthly self-employed business report, filed with the court as a cash flow statement. This accounting would allow the debtor to total receipts from the business; itemize expenditures including the actual cost of inventory purchased, business mortgages/rent and utilities paid, equipment lease payments, insurances, supplies, transportation, payroll and taxes and arrive at an ending balance in the debtor’s business account. Gross income for the debtor’s business can be calculated this way. The cash flow statement available would vary from one district to another, so a qualified bankruptcy practitioner in your jurisdiction would be able to help you comply with the requirements for reporting business income on the bankruptcy petition as well as completing required additional disclosures on the Statement of Financial Affairs as relate to the debtor’s business.
