Self Employed Individuals Use Net income not Gross income on form 22C, Means Test

Self Employed Individuals Use Net income not Gross income on form 22C, Means Test

The US Bankruptcy Court for the District Court of Puerto Rico recently ruled in In Re: Roman (2011 Bankr. Lexis 4483) that self employed debtors may take above the line deductions for businesses expenses on form 22C.

Had the judge ruled that these expenses were not allowed as above the line deductions bankruptcy debtors in chapter 13 may have been forced into longer reorganization plans and had to pay more each month to their creditors.

This decision is good for self employed bankruptcy debtors.

If you have any questions about being self employed and filing bankruptcy please call the office to discuss your situation.