View Full Version : Income derived from self-employment
|
Mr. Smith 07-23-2004, 11:59 PM As regards a BK filing. My income is derived from a sole proprietorship. I am a consultant. If I have regular weekly checks for services rendered, how does the trustee see that? As income or accounts receivable? Thanks... Thoth 07-24-2004, 09:44 AM "Mr. Smith <g>" <mr.smith@notmyrealaddress.com> wrote in message news:NNnMc.11567$mL5.9371@newsread1.news.pas.earth link.net... As regards a BK filing. My income is derived from a sole proprietorship. I am a consultant. If I have regular weekly checks for services rendered, how does the trustee see that? As income or accounts receivable? Thanks... Are the services rendered substantially contemporaneous with the weekly checks? Or were the services rendered in the past, and the weekly checks are bringing down the balance of a debt owed to you? If the latter, the debt, or account receivable, should be scheduled as an asset. Another way to look at it is: Do you have the right to collect these checks whether or not you go to work tomorrow? If the answer is no these payments should only be scheduled as income (and probably as an executory contract if there is a long-term consulting agreement). Mr. Smith 07-25-2004, 07:12 PM "Thoth" <thoth@notlisted.net> wrote in message news:olwMc.35174$Sh.30673@lakeread06... "Mr. Smith <g>" <mr.smith@notmyrealaddress.com> wrote in message news:NNnMc.11567$mL5.9371@newsread1.news.pas.earth link.net... As regards a BK filing. My income is derived from a sole proprietorship. I am a consultant. If I have regular weekly checks for services rendered, how does the trustee see that? As income or accounts receivable? Thanks... Are the services rendered substantially contemporaneous with the weekly checks? Or were the services rendered in the past, and the weekly checks are bringing down the balance of a debt owed to you? If the latter, the debt, or account receivable, should be scheduled as an asset. Another way to look at it is: Do you have the right to collect these checks whether or not you go to work tomorrow? If the answer is no these payments should only be scheduled as income (and probably as an executory contract if there is a long-term consulting agreement). Thanks for reply. The checks are paid weekly for work done the previous week. They are not a paydown of an existing receivable. This is an open-ended contract. |
|
||||
