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Gross business income in Ch13 means test?
9th Circuit Court of Appeals held form B22C is inconsistent with the code(Case name is escaping me at the moment). Business expenses for sole
proprietors are to be inserted in the expense section and not deducted fromgross income. If this results in the debtor being above median and Lanning and
Kagenviama are not applicable then it is a 5 year plan. This is why
incorporating prior to the bankruptcy case being filed and waiting the necessary
time to reduce the gross income to below median levels should be exploredas an option.
Mark T. Jessee
Law Offices of Mark T. Jessee
"A Debt Relief Agency"
50 W. Hillcrest Drive, Suite 200
Thousand Oaks, CA 91360
(805) 497-5868 (805) 497-5864 (Facsimile)
.
In a message dated 12/14/2012 9:15:52 P.M. Pacific Standard Time,
paloci66@yahoo.com writes:
Debtor is a self-employed realtor with a small amount of business expenses.
I have a note on a Ch13 prep sheet from WH in this case that says "must
use gross business income to determine line #15 figure."
That doesn't sound right to me. Not including business expenses is unfairbecause it does not provide an accurate reflection of debtor's income. Itwould also put my debtor over median.
Am I reading this incorrectly?
Help appreciated.
Henry Paloci, Esq.
805.498.5500
9th Circuit Court of Appeals held form B22C is inconsistent with the
code (Case name is escaping me at the moment). Business expenses for sole
proprietors are to be inserted in the expense section and not deducted fromgross income. If this results in the debtor being above median and Lanning
and Kagenviama are not applicable then it is a 5 year plan. This is
why incorporating prior to the bankruptcy case being filed and waiting the
necessary time to reduce the gross income to below median
levels should be explored as an option.
Mark T.
JesseeLaw Offices of Mark T. Jessee"A Debt Relief Agency"50 W.Hillcrest Drive, Suite 200Thousand Oaks, CA 91360(805) 497-5868 (805)
497-5864 (Facsimile).
In a message dated 12/14/2012 9:15:52 P.M. Pacific Standard Time,
paloci66@yahoo.com writes:
Debtor is a self-employed realtor with a small amount of business
expenses.I have a note on a Ch13 prep sheet from WH in this case that
says "must use gross business income to determine line #15 figure."
That doesn't sound right to me. Not including business expenses is
unfair because it does not provide an accurate reflection of debtor's income.
It would also put my debtor over median.Am I reading this
incorrectly?Help appreciated.Henry Paloci,
Esq.805.498.5500
The post was migrated from Yahoo.
Debtor is a self-employed realtor with a small amount of business expenses.
I have a note on a Ch13 prep sheet from WH in this case that says "must use gross business income to determine line #15 figure."
That doesn't sound right to me. Not including business expenses is unfair because it does not provide an accurate reflection of debtor's income. It would also put my debtor over median.
Am I reading this incorrectly?
Help appreciated.
Henry Paloci, Esq.
805.498.5500
The post was migrated from Yahoo.