What is a Business Case?

Debtors who are self-employed as a sole proprietorship, report income as independent contractors, or earn a salary from a partnership or corporation they have an ownership interest in, are considered to be business cases by the Trustee.  As a result, there are additional reporting requirements placed upon these Debtors under the Bankruptcy Code.  The debtor is required to submit to the Trustee the following:

Proof of current insurance - business liability, workers compensation if there are employees or uninsured subcontractors, liquor liability if the business uses a liquor license, and automotive insurance for any business vehicles.

License - proof of current license if the business is required to have one to operate. Examples include day care centers, physicians, pesticide applicants, etc.

Income verification - copy of the previous year's Federal tax return for the individual and business, as well as monthly business reports (profit and loss statements, copies of business bank account statements, copies of canceled checks) for the current year through confirmation. Monthly business report forms are available from the Trustee's web site.

If a non-debtor spouse is self employed, income verification for that spouse's business is required.