Just a quick follow up. If I document that I have paid X amount of wages and as such have Y amount of tax liability owed to IRS, Worker's Comp, Unemployment, etc., that amount would have priority and be required to be provided for by the Trustee, correct? They would either have to leave that amount in the account for me to pay those obligations or take that amount of money and pay the obligation themselves. Since my salary is a bit more than the 30 hour calculation would it be beneficial to simply try to file the case say the day or so after I get paid, thus reducing the amount of money in the operating account and generating priority debt, and then pay regular household expenses such as car insurance, groceries, car payment from my income. My ultimate goal here is to keep the business in tact and discharge my personal debts while not setting the corp (and myself) up for trouble with the IRS. I was considering attempting to negotiate the settlement of these debts but don't think I can handle the 1099 debt forgiveness on my taxable income.
I feel somewhat better knowing that, as I read the information that you provided, my tax liabilities will be provided for.
One last issue. Should I 'pay up and over' certain things such as utilities (for the corp) so that I have a credit on those accounts? I have no guarantee that I am going to have any paying clients in any month after I file bankruptcy so I would like to ensure that the lights are on and the telephone can still ring. I assume that I can still stock up on office supplies and could purchase certain office equipment that would be exempt under the tools of the trade exemption. All of these I would pay for from the operating account as a regular business expenses.
Thanks for your help.
Thanks so much. I will await your response regarding the utilities. I usually pay my rent for January in December so as to reduce the taxable income in the account and also ensure that I have enough money to pay it. Any problem with doing that again?
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).