Home>If I’m self-employed and in Chapter 13, what should I do?
If I’m self-employed and in Chapter 13, what should I do?
June 29, 2022
By Diane Drain Attorney & Retired Law Professor
Every debtor who is self-employed or owns a business is required to file a “Business Operating Statement” on a monthly basis. A person who is self-employed, whether full-time or part-time, is considered self-employed. For the purposes of submitting the operating statement, a person who is an independent contractor, subcontractor, works on a contract labor basis, or does any other employment where taxes are not deducted from the pay received is considered self-employed. The Debtor will receive a copy of the business operating statement as well as instructions from the trustee and this office. You will work with us in preparing the form, which we will file with the court.
The initial Business Operating Statement must be filed in the month the debtor filed their chapter 13 case. After that, a new Business Operating Statement must be filed on or before the 15th day of each subsequent month. These statements are submitted with the Bankruptcy Court, and copies to the Trustee.
The Business Operating Statement is a report that is based on cash. For this report, do not use accrual accounting. Make sure you keep track of all of your income and expenses. If you have any questions, consult an attorney.
By Diane Drain|Published On: June 29th, 2022|Last Updated: July 28th, 2022|
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