Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
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is this a chapter 7?
Is this a regular consumer bankruptcy?
Chapter 13 possibly to protect a cosigner on my house. I ask because I've been selling off many hobby items for the past few years on eBay and may need to reflect this in an ammended tax return for my bank statements to match my income from the sales.
This is not for a business
In a chapter 13, expect your last 6 months income statements, and if you are a sole proprietor, the trustee could ask for your last 12 months bank statements,
In terms of tax returns your most recent is required, and the prior one year in some cases, if their is an issue in regards XXXXX XXXXX income.
The trustee will rarely go back more than two years,
If they see income from eBay sales over these last 6 months on my bank account would they go back more than 1 prior year to check for lets say 3 years of sales. I dont want to open a can of worms in regards XXXXX XXXXX sales activity.
Also, would ammending my last tax return prompt them to go back farther
I'm afraid that if I ammend 3 tax returns back, they may audit me and disallow the petition.
that is possible,
But the bankruptcy court, will look at your filed returns, and if they see you did not decalre income, it could be an issue,
Any way to safely address this situation?
Would paying back taxes help the situation
If you declare all income in your petition, and can prove to the Court that it was an oversight, and you filed an amended return, you should not have a major problem.
Great, so they wont hold this against me or think it's too suspicious.
Thanks for your help!
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