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 Ellen Your Own Question
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
Type Your Bankruptcy Law Question Here...
Ellen is online now
A new question is answered every 9 seconds

Planing to file Oct2-3. But all work done between next MOnday

This answer was rated:

Planing to file Oct2-3. But all work done between next MOnday and end of the month will be subject to assets/liabilities (income/expense) on October 14 and 28.
There is 2 week delay in receivables. I pay my contractors when I get paid. Should I switch myself from Corporation to subcontractor before monday, thus limit what's on the books on Oct2-3, or should I continue status-quo, until Trustee orders me to close my corporation?
*This chat is not intended as legal advice. It is general information that may or may not apply to your situation and should not be relied upon.*

Thank you for your new question. Please remember I cannot give you legal advice. Although I am a Florida attorney I am only providing you with general information

Monies owed to an independent contractor are not considered wages and do not qualify for a wage exemption. Any money that is owed to you as an independent contractor would need to fall within your personal property exemption or it would be lost
Customer: replied 4 years ago.

Would monies owed to a corporation be lost as well?

More than likely
Customer: replied 4 years ago.

so, I better stop working...

May be so
Customer: replied 4 years ago.

I should then urge my subcontractors to look for work and stop working for me as of monday?

You would really need to consult with local counsel to make that determination as I cannot analyze your corporation and personal situation to that extent
Customer: replied 4 years ago.

Problem with local Attorneys is, that they sit in for 5 min and get pulled out, and then its a paralegal, who's knowledge is as good as mine. Besides, I do not have the money! Had I come across this site, I would have saved myself 2K in loan modification...

I understand that you are unable to answer. I wish I could sit down with you! Last question for today. Somewhat rhetorical. What monies am I supposed to pay my bills with if Trustee seizes either my Corporation's or my own ( as a subcontractor) income ( would the trustee acknowledge that corporation owes monies to me) After all, I become the property of a Trustee once I file. Sic!!!

Unfortunately, the bankruptcy law only makes provision for those assets listed as exempt in a chapter 7. You really may want to do the calculations to see if you are better off in a 13. My suspicion is that you will be very surprised
Ellen and 3 other Bankruptcy Law Specialists are ready to help you
Customer: replied 4 years ago.

The thought of surrendering my life to someone for next 3-5 years is hard to accept. I have a property that is worth 1/3 of what I owe on it. My home, after modification to first mortgage and possibly settling on 5-10 cents on the dollar on 2nd mortgage down the road, will cost me as much as rental. Hence I exempt it. I have 40 K in CC debt, and schedule J shows negative cash flow. No residual income to pay 13. Yet, the means test takes me through to the end, since my income is above 35K. I still will need to trim my expenses to pay obligations after successfully completing ch.7. I have one option up my sleeve. Taking ex-wife to court to modify/ lower my child support payments. But that's for down the road. And even if, my chances are slim to none.

Customer: replied 4 years ago.

Thank you again. Your answers and clear and concise. I will be in touch as I continue going through all the docs. BTW. I was prompted to authorize another payment to chat with you. I was under the impression, that my membership allows for unlimited question. Was I wrong?

Related Bankruptcy Law Questions