Ok, a couple of things, how do we legitmatley apply the money to our living expenses? I have read about litttle stuff, like food and clothes, but there is only so much of that you can buy- Medical expenses? what about a new roof? new well? new garage? gravel for the driveway? I will definately not be putting any money towards creditors.
Response 1: All of the above. If you can spend the money that way now, then you can file for bankruptcy protection without waiting until next year. However, you should keep all receipts in case the Trustee asks for them.
I am making enough to pay our bills, but obvisily not enough to pay back $400,000 of unsecured debt from the business. Also, the debtors may possibly start garnishing wages, sorry, lots of gray area! Hypothetically if we waited till next year - does the refund count as earned income & affect our chances of filing a chapter 7?
Response 2: No. The refund is not income but an asset. Income is listed on bankruptcy Schedule I and Asset is listed on Schedule B.
If not, how far into 2011 should I file?
Response 3: See my Response #1
Also, since my attorney has a small deposit, and we have talked with him, is that some sort of acknowledgement that I knew what I was doing?
Response 4: Yes but any discussion you have with your attorney is protected by Attorney-Client privilege.
I mean, I sort of do, I know I owe "banks" & "vendors" money but I am trying to justify this because of all the money I put in this business and am now broke because of customers that didnt pay me. I am married but my wife is not filing for bankruptcy because it is all in my name and she does not work. Thanks for any additonal help
Response 5: You are quite welcome.