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Do I Have to Give Information about My Business if Filing a Personal Bankruptcy?

Posted By admin || 12-Jul-2012

Do I Have to Give Information about My Business if Filing a Personal Bankruptcy?Whether you file a Chapter 7 or Chapter 13 bankruptcy , you are required to disclose certain financial information about your business.  Most likely, any business interest accrued would need to be disclosed; if you have more than 5 percent in business ownership, this would also need to be presented upon filing.

Basic information about your business may be needed such as the name of your business, address, Federal Tax ID number and that date your business began.  If your business has ended, you'll need to provide an ending date.  If your situation applies, you may need to provide details about bookkeeping and accounting practices, such as those you have hired to help maintain business finances and any inventory taken.  If your business owns shares or has shared ownership or is incorporated, these details should also be disclosed.

Business interest that is currently being earned or has been earned in the last 6 years may need to be furnished. Even if your business is closed, inactive or active, you may be required to provide financial data for the last 3 years.  Documents such as business tax returns for the last 2 years, income statements that detail profit and loss, and monthly balance sheets may need to be provided if you have more than 50 percent ownership interest.

Documentation for those who own less than 50 percent of a business may include personal tax returns, an income statement from the past year that details profit and loss, and a document that details income and loss from the past 6 months before filing your petition.  The information helps to understand how aspects of your business impacted your personal finances.  Plus, this information can help protect any equity within the business, while determining if bankruptcy is the best option for your situation.

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