Oak Park Real Estate & Estate Planning Blog

Are you self-employed and considering the possibility of filing for personal bankruptcy in Illinois? Our experienced Oak Park bankruptcy lawyers know that you are likely to have many questions and concerns about the bankruptcy process, including your eligibility to seek bankruptcy protection without W-2s or more common ways of showing your average wages and general income. In short, self-employed people can be eligible to file for both Chapter 7 and Chapter 13 bankruptcy in Illinois, but there are some important things that you need to know. Proving Your Self-Employment Income Bankruptcy cases can be slightly more complicated for individuals who are self-employed because they do not have the same type of documentation concerning their regular income and the income they have earned in recent years. Under U.S. bankruptcy law , when a self-employed person wants to file for bankruptcy, they will need to ensure that they have sufficient information and documentation to prove their income. ...

If you are self-employed and your business is struggling during the coronavirus pandemic, you may be thinking about filing for bankruptcy . Indeed, the COVID-19 pandemic is making it extremely difficult for small businesses to remain in business, especially those that were struggling financially prior to the coronavirus outbreak. Yet it is important to keep in mind that complications can arise when you are filing for bankruptcy as a self-employed person. You should know that an experienced Oak Park bankruptcy lawyer can help you with your case today. In the meantime, the following are five things to know about bankruptcy for the self-employed. You Need to Know Whether You Want to File for Personal Bankruptcy, Bankruptcy for Your Business, or Both When you say you are self-employed and want to file for bankruptcy, it is important to know the answer to this question: Do you want to file for personal bankruptcy, business bankruptcy, or both? Depending upon the nature of your self-emplo...

Filing for personal bankruptcy is complicated under any circumstances, but the process can be more complex when you are self-employed. When a person is self-employed, it can be difficult to know what kind of documentation she or he might need in order to pass the “means test” for Chapter 7 bankruptcy , or to prove that the debtor has sufficient and regular income to file for Chapter 13 bankruptcy. These complications can become more significant when a self-employed person is also a small business owner. We want to discuss consumer bankruptcy for self-employed individuals, and to provide additional information about personal bankruptcy when you are self-employed and a small business owner. Proof of Income for Chapter 7 or Chapter 13 Bankruptcy In order to qualify for Chapter 7 bankruptcy under the U.S. Bankruptcy Code as an individual (as opposed to a business), you need to be able to show that you can pass the “means test.” In effect, passing the means test is evidence that a liqui...