Self-employment is often a rewarding way to create income for you and your family. However, self-employment doesn’t always guarantee a regular income, especially if you work in an industry that has fluctuations in demand. If you are self-employed and have found it difficult to meet debt payments each month, you have several options for debt relief, including bankruptcy. For those with a steady self-employed income who also want to keep their home and other properties, filing for Chapter 13 bankruptcy in St. Peter, MN, is a realistic and highly effective option. With the help of Behm Law Group Ltd., self-employed filers can build a successful case and start a repayment plan that fits their financial circumstance.
Filing for bankruptcy, especially Chapter 13 bankruptcy, requires a collection of financial documents, income verification, expense reports, and much more. These documents can sometimes be difficult for some people to track down and organize, particularly for those who are self-employed.
The help of an expert bankruptcy attorney is often critical for self-employed filers to compile a case with a repayment plan proposal that the court and bankruptcy trustee can accept. Many self-employed filers are required to provide more extensive documentation of income and expenses when they file for Chapter 13.
Income Verification
Verifying your income received from self-employment can be tricky depending on the nature of your work. Tracking your income carefully, even if you don’t plan on filing for bankruptcy, is a good idea for those who are self-employed. This tracking can include:
- Check Stubs: When your clients, customers, or other parties who commissioned your work pay by check, saving those checks from the last 12 months is an excellent start to income documentation.
- Invoices: If you request payment in the form of invoices, filing those invoice documents (digital or physical) is also key.
- Contracts: Contracts are legal proof of your work with a client. Without that proof, you may have a difficult time explaining forms of payment such as checks, cash, or transfers.
- Tax Returns: Records of your self-employment income and the yearly taxes paid on it is also required for a Chapter 13 bankruptcy petition.
- Bank Statements: Deposits, withdrawals, credit card transactions, account records, interest, and most other bank statements are necessary to build a strong Chapter 13 case.
- Signed Statements: In many cases, unconventional, random, or odd signed statements can often also prove up a contractual agreement. These signed statements are frequently required for your bankruptcy case, and missing the information they provide might break, rather than make, your case.
Overall, the more financial information self-employed filers can provide their attorney and the court, the better. Every transaction you encounter that connects to your income as a self-employed individual as far back as a year may be involved in your case.
To learn more about gathering the necessary financial information and building a strong case for Chapter 13 bankruptcy in St. Peter, MN, contact Behm Law Group Ltd. at (507) 387-7200 today.
