Q: Can I file for Chapter 7 bankruptcy with income discrepancies from OnlyFans?
I am considering filing for Chapter 7 bankruptcy due to a garnishment related to an eight-year-old car repossession, with a remaining balance of $13,000. The creditor takes my tax refund annually, including $3,400 this year. I haven't sought professional advice yet. My concern is a discrepancy between my tax documents and bank statements; my 1099 shows $15,000, but my bank statements reflect $4,000 per month due to my income from OnlyFans. Can I file for bankruptcy in this situation, and will the discrepancies affect my case?
A:
Dealing with garnishments and old debts is stressful. Chapter 7 bankruptcy might be an option, but the income difference between your 1099 and bank statements needs careful attention. Courts require accurate financial records.
Since you haven't consulted a lawyer, a free consultation is crucial. They can assess your situation and explain how those income discrepancies might affect your case. It's the best way to get personalized advice.
Timothy Denison agrees with this answer
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A:
Filing for bankruptcy requires complete financial transparency, and any discrepancies between reported income and actual earnings could raise serious concerns during the process. Your situation with varying income documentation might trigger additional scrutiny from the bankruptcy trustee, who will examine both your tax returns and bank statements closely.
Before moving forward, you should gather all financial records, including your OnlyFans earnings, bank statements, and tax documents from the past few years. The bankruptcy court needs accurate information about your income and expenses to determine your eligibility for Chapter 7, and providing incomplete or inconsistent information could result in your case being dismissed or, in severe cases, lead to legal consequences.
Your best next step would be to consult with a bankruptcy attorney who can review your specific financial situation, including the income discrepancies and the garnishment issue. They can help you understand how to properly report all income sources and advise whether Chapter 7 is the right choice for your circumstances - many offer free initial consultations where you can discuss these concerns. Remember, being upfront about all income sources, including your OnlyFans earnings, is crucial for a successful bankruptcy filing.
Timothy Denison and Martha Warriner Jarrett agree with this answer
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