CALL FOR A FREE
INITIAL CONSULTATION
813.254.5696

BRIDGING YOU TO A BRIGHTER FUTURE

I’m Self Employed – Can I File for Bankruptcy?

workingWhen it comes to being self-employed, sometimes it seems the odds are stacked against you. Taxes, insurance, other expenses… the list of frustrations goes on and on.

But what about bankruptcy? If you run into financial difficulties while working for yourself is filing for bankruptcy an option?

Though every situation is different, most self-employed people are eligible to file for bankruptcy. However, like nearly everything else, they will need to submit more documentation when filing than someone who is not self-employed.

Filing for bankruptcy as a self-employed individual is possible, but your employment status might complicate things. This is another reason why it’s important to work with an experienced bankruptcy attorney.

Bankruptcy and Assets

Part of the reason why filing when you are self-employed is because the line between what’s yours and what’s your business can be blurry.

Should you choose to file Chapter 7 bankruptcy and have your non-exempt assets liquidated to pay creditors, there might be confusion regarding what are business assets and what are personal assets. You might have assets needed to run your business, but they might not be exempt for their full worth under bankruptcy law and can be seized by the bankruptcy trustee overseeing your case.

Bankruptcy and Proof of Income

Additionally, a self-employed individual might not have the ability to show proof of income as easily as someone who is employed by another entity. This means you’ll need to gather bank statements and your profit and loss documents for at least six months prior to filing so the court can review your financial situation. You’ll also need to show what portion of your money was designated as salary and what portion was invested back into your business.

If you file for Chapter 13 as a self-employed individual, you’ll need to determine if the amount of money you’ll be paying in your monthly installment plan outweighs the value of continuing to work for yourself and retaining ownership of any assets needed to work.

Bankruptcy Means Test

Before you file for bankruptcy you’ll need to take a means test to help you determine whether you qualify for Chapter 7 or Chapter 13.

The value of your business might also affect whether or not you qualify to file for Chapter 7 or Chapter 13. Your business’s value might put you “above the median” even though your take-home pay is low enough to qualify you for Chapter 7. There are also cases in which self-employment can benefit you and help qualify you for Chapter 7 because your disposable income is lower.

To learn more about the bankruptcy means test, check out this information from the federal court system.

The bottom line?

Being self-employed and filing for bankruptcy is possible. Bankruptcy can be confusing and more complicated than filing as an employee of a business or unemployed individual. Working with an attorney is an important part of bankruptcy success for anyone, but it’s even more important when you’re are a self-employed business owner.

For more information or to speak to someone about your situation and find out how being self-employed might affect your bankruptcy status, contact the Law Office of Robert M. Geller at 813.254.5696.

Tampa Bankruptcy Law Blog

What Do I Need to Know about Property Seizure?

What Do I Need to Know about Property Seizure?

One of the scariest things that can happen when you’re dealing with out-of-control debt is property seizure. Creditors might legally...
Read More
I’m Self Employed – Can I File for Bankruptcy?

I’m Self Employed – Can I File for Bankruptcy?

When it comes to being self-employed, sometimes it seems the odds are stacked against you. Taxes, insurance, other expenses… the...
Read More
Can I Move Out of State after Filing for Bankruptcy?

Can I Move Out of State after Filing for Bankruptcy?

Most people know there are limitations on traveling and moving if someone is accused of committing a crime, but what...
Read More
What Should I Know about College Loan Debt?

What Should I Know about College Loan Debt?

If you’re thinking about borrowing money to pay for college or your child is thinking about college and you know...
Read More
Should You Continue Paying Your Debts after You Decide to File for Bankruptcy?

Should You Continue Paying Your Debts after You Decide to File for Bankruptcy?

One of the most common questions bankruptcy lawyers get from clients is whether or not they should keep making payments...
Read More
Debt in Collections? Five Things You Shouldn’t Do

Debt in Collections? Five Things You Shouldn’t Do

Having a debt be turned over to collections is not the end of the world. Even those who are careful...
Read More
How Can I Avoid a Second Bankruptcy?

How Can I Avoid a Second Bankruptcy?

Bankruptcy is viewed as a solution to serious money challenges. It offers a brand new start and helps you get...
Read More
Will Bankruptcy Help Protect My Vehicle from Repossession?

Will Bankruptcy Help Protect My Vehicle from Repossession?

The idea of bankruptcy might be intimidating, but filing can actually help you in a variety of ways. One of...
Read More
What is the “Wild Card Bankruptcy Exemption”?

What is the “Wild Card Bankruptcy Exemption”?

There are a lot of terms that arise when you’re considering bankruptcy. It’s important to understand what each thing means...
Read More
Will Filing for Bankruptcy Help You Remove a Court Ordered Judgment?

Will Filing for Bankruptcy Help You Remove a Court Ordered Judgment?

A court ordered judgment against you related to debt can wreak havoc on your life, but it might be possible...
Read More

Contact Us

Search Website

Archive

Request a FREE Consultation

For The Next 5 Days Get A Free Book About Bankruptcy


 
comodo 10.0Robert Marc Geller
Robert Marc GellerClients’ ChoiceAward 2017 Robert Marc GellerReviewsout of 32 reviews LEA

We are A Debt Relief Agency.
We help people file for
bankruptcy under the Bankruptcy Code

Pay Online     Bankruptcy Courses    

Office Locations

$Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405
Maps & Directions


Tampa Law Office Map

Satellite Office

$Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G

St. Petersburg, FL 33701
T: 727-532-3939
Maps & Directions


Map and Directions

At the Tampa Bay law firm, the Law Offices of Robert M. Geller, P.A., we help people with consumer bankruptcy matters in the Tampa Bay-St. Petersburg,  Florida communities such as Clearwater,     St. Petersburg, Tampa, Thonotosassa, Riverview, Lutz, Plant City, Brandon, Carrollwood, Wesley Chapel, St. Petersburg Beach, Lakeland, Mulberry, Dade City, Pinellas Park, Largo, Seminole, Odessa, Oldsmar and Lithia, and counties such as Hillsborough County, Pinellas County, Pasco County, Polk County and Manatee County.