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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2900
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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So lets say I file today. My husband receives the check that

Resolved Question:

So let's say I file today. My husband receives the check that he billed for his hours worked (he's not incorporated and doesn't have an LLC) a couple of weeks after we already filed. How do we include this check? As income? Do we state in the petition when we first filed that it's to be included in accounts receivables? Thanks
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 6 years ago.

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

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.

Terry L. :

This is an asset.

Terry L. :

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.

Customer:

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.

Customer:

So, when you say exemption, do you know what it would be for Colorado? Thanks

Terry L. :

yes, you would list it as accounts receivable, on line 21 of schedule B.

Terry L. :

Let me look at CO exemptions. 1moment

Terry L. :

This is the closest you would have:

Terry L. :








WAGES



Minimum 75% of earned but unpaid wages, pension payments



13-54-104



 

Terry L. :

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.

Terry L. :

Thanks

Customer:

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.

Terry L. :

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.

Terry L. :

Any other questions?

Terry L. :

If you have any other questions, just let me know. thanks and good luck.

Terry L. :

please click the green "Accept" Button so I may get credit. Thank you

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