Proof of income for the self-employed

If you are filing for bankruptcy, you’ll need to prove what your income was in the 6 months before you file.  This doesn’t include the month you’re filing, just the 6 months before that.  So if, for example, you’re filing in June, you need to provide proof of income for December through May.  Most people who are employed can use their pay stubs, but if you’re self-employed, you don’t have that luxury.Fortunately, there are still ways you can account (no pun intended) for your income.  You can provide your attorney with your bank statements for that period or you can provide monthly profit and loss statements.  The profit and loss statements should be broken down by month, so don’t just create one for the 6 months in question.  Each month should show how much you made, how much you spent, what exactly you spent it on, and how much you had left over every month.  You can find many sample profit and loss statements on the internet.

Previous
Previous

House of Representatives passes a bill limiting fees to 3% for qualified mortgages

Next
Next

Buying a car right before filing for bankruptcy