How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask cfortunato Your Own Question
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
14232603
Type Your Bankruptcy Law Question Here...
cfortunato is online now
A new question is answered every 9 seconds

I get addional income from a sale of my business 4years ago

Customer Question

I get addional income from a sale of my business 4years ago which just pays my house payment, I have 4yrs left of payments , will this go agaist me from filing chapter 7? What will happen if i did not declare that income? Thank you
Submitted: 6 years ago via Nolo Press.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.
What did you mean when you said, "will this go against me from filing Chapter 7"?
Where you receiving this income when you filed the Chapter 7 case?
Customer: replied 6 years ago.

If i file for chapter 7, will this income from the sale of my gym be used as a asset against me, I sold my gym a few years back , and i am reciving payments for the next four years. I make very little income for the hours i work and relay and the monthly payment from the sale of the gym.

Do i need to add this income as a asset even thou i pay taxes on this, if i add this as a asset , will i lose this payment? Or will i have to file chapter 13? if so in which case i would never be able to afford to pay the trustie , any advice will be great, Thank you,

p.s if you should need any more info please let me Know, Jamie

Expert:  cfortunato replied 6 years ago.
The income from the gym is treated the same as your employment income. If both of them together total less than $36,628.00 for a household of one, then you should be able to file a Chapter 7.


Edited by Christina Fortunato, Esq. on 5/8/2010 at 12:32 PM EST
Expert:  cfortunato replied 6 years ago.
The income from the gym is treated the same as your employment income. If both of them together total less than $36,628.00 for a household of one, then you should be able to file a Chapter 7.
Customer: replied 6 years ago.

I was told that the monthly income from the sale of the gym would be used as a asset and that i would lose that payment!!!!

I do recive a w2 at the end of the year in which i file taxes on that income,

 

I was told i would have to file chapter 13 because of that extra income,

With my wages and income the total per year before taxes =$41.000 for a family of two, could i still file for Chapter 7. Thank you Jamie

Expert:  cfortunato replied 6 years ago.
Who told you that you would have to file a Chapter 13 because of that income?
Customer: replied 6 years ago.
Another Laywer, he said that was my only option , I look forward to your answer , Thanks Jamie
Customer: replied 6 years ago.
on one of the chapter 7 questions forms i had to fill out, It asked if i had owned any buissness, Or sold one with in the past 5 years, I said yes and that the new owner is making payments to pay it off, which i report as income..... Hope hope this info helps.
Expert:  cfortunato replied 6 years ago.
There is no question that if you had sold the business for cash, that cash would be non-exempt if you still had it.
Since you chose instead to receive the sales price in installments, I see that as an annuity, and therefore exempt up to the allowable amount.
However, as I honestly do not know what a bankruptcy trustee would decide, I am opting out of this question, for someone who may have a better idea.

Related Bankruptcy Law Questions