Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.
If this is a joint filing, you would list all accounts receivable on schedule B. and use any exemptions that you may have on schedule C.
This is an asset.
Unless it is a large sum, it likely won't be much of an issue. The snapshot is taken as of the date of filing, so this would be A/R, money expected, which is an asset of the bankruptcy estate, unless it can be protected with an exemption.
So if we already know ahead of time that he will be getting this money, but he hasn't received it on the day we filed, we should go ahead and list it on schedule B? It's for around $16K.
So, when you say exemption, do you know what it would be for Colorado? Thanks
yes, you would list it as accounts receivable, on line 21 of schedule B.
Let me look at CO exemptions. 1moment
This is the closest you would have:
Minimum 75% of earned but unpaid wages, pension payments
You should talk to a local bankruptcy attorney to advise you on the use of the exemptions. It may be wise to wait until you receive it and spend it down if it is needed for business. Talk to the attorney about the timing of the case.
For example, if he receives 9K, one third would go to taxes which would leave about 6K; the trustee would take 25% of 6K which would be $1500? Honestly, we have consulted different lawyers and it seems most do not know what they are saying. Some even went as far to say that we need to include this as regular income for the 6 month period (even though the money hasn't been received!). He doesn't have much business expenses to deduct the money from by the way.
Unfortunately, we cannot give you advice as to the exemptions in this forum, it is an informational forum only, we can't create an attorney client relationship. Talk to your local attorney to review how to schedule it, they can tell you what the local trustee is likely to do as well.
Any other questions?
If you have any other questions, just let me know. thanks and good luck.
please click the green "Accept" Button so I may get credit. Thank you
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).