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how to state income from s-corp issue?

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semantic

Member
What is the name of your state?undefinedCalifornia:
What is the name of your state?
California:

This is a sticky one for me: I am filing pro se for a personal joint bankruptcy chapter 7. I'm using a service online to fill out the forms (they are helpful, but don't give detailed advice). The questions are right off the federal bankruptcy forms, which I have looked at, and the instructions from the feds don't help me either.

I am stuck in the 'income' form, and the statement of financial affairs form, where it asks for income.

We owned an s-corp that went under, financing it with personal credit cards while attempting to dig out, but the business didn't work out obviously, and we were stuck with the debt. We ARE NOT putting the corp in bankruptcy, this is about personal bankruptcy.
Our stated income (what we report to the feds) has been a 'carryover loss' for the years we were in business. Our tax returns show no income, in fact, it shows negative income (s-corps allow gains or losses to flow through to the shareholders). We basically lived off draws from the business, which came mostly from the cash flow we supported with our credit cards. Rough.

So, in the bankruptcy forms, just what do I state for 'income'? Zero? Less than zero? Or does the court want to know what I've been living off?
I'm afraid, once I get in court, the trustee and judge will grill me, "well what do you mean you have no income...what have you been living off????" and deny my petition.

I can't find any resources to answer these questions regarding income (loss) from s-corps, and what the court wants to know.

Sure could use some input here, trying to get in under the old laws....
thanks,
semantically challenged
 



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