It seems like debt continues to plague millions of people across the United States even with a steady income.  Nowadays, many people are choosing to have second jobs that may be computer-based with the luxury of being able to work at home.  Many of these jobs are considered to be freelance employment, and most likely taxes are not withheld from any paycheck received.  This creates a couple of issues that many people may not be aware of.  The first issue is that you may owe taxes the following year on any income earned from a second, independent contracting job.  The second, and more applicable issue, is that you cannot omit this secondary income from your bankruptcy filings.

 Reporting Secondary Income

Some people believe that they only need to report income they receive from a full-time job.  Whether intentional or not, leaving secondary income off of your Chapter 13 bankruptcy paperwork can prove to be problematic down the road.  As such, when considering bankruptcy, it is absolutely imperative that any and all income is disclosed, regardless of how much it is.  Any additional income may be used to pay off debt in accordance with your Chapter 13 bankruptcy repayment plan.  If you have not yet filed for bankruptcy, speaking with an attorney will help to ensure you are not leaving anything off of your paperwork.

Don’t Let Mistakes Compromise Your Chapter 13 Bankruptcy

Small mistakes could result in an unsuccessful bankruptcy, and failing to report ancillary or secondary income is considered a rather big mistake, but one that certainly can be corrected.  However, in order to take the necessary steps to get a bankruptcy back on track, you should have a skilled legal professional handle the matter on your behalf.  While you can fill out paperwork on your own, and seek to modify your bankruptcy repayment plan with the court, having an attorney handle the matter will help to make sure you have not left off any important information such as secondary income.

Why You Should Act Quickly

Regardless of whether or not you wish to work alongside an attorney, if you are aware there is a mistake on your Chapter 13 bankruptcy filing, and you have failed to disclose secondary income, you should correct the error as quickly as possible to limit the stress you may experience down the road when the bankruptcy court becomes aware that not all income has been reported on your bankruptcy filing.  We all make mistakes, and it is okay to make mistakes, but curing those mistakes is essential to continue on your path to becoming debt-free through the Chapter 13 bankruptcy process.

Contact Kansas City Bankruptcy Attorney Douglas Breyfogle Today to Schedule a Free Consultation

If you or a loved one is considering bankruptcy as a means to eliminate debt, it is crucial that you are aware of all options available to you.  Bankruptcy can be a rewarding experience if completed successfully.  With the assistance of a qualified Kansas City Bankruptcy Attorney, you will be in a better position to tackle your debt head on either with bankruptcy or another debt-elimination method.  With more than twenty years of experience helping Kansas City consumers, Kansas City Bankruptcy Attorney Douglas Breyfogle is a seasoned legal professional with the necessary resources and advocacy skills to represent his clients’ rights and interests to the fullest extent possible.  Regardless of the type and amount of debt you have, if you are having trouble making ends meet and making payments each month, you should consider contacting Mr. Breyfogle right away to discuss your situation.  To schedule your free consultation, contact our office today by calling (913) 742-8700.