What do I need to include under the table income on schedule I?

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Question:

What do I need to include under the table income on schedule I?

Answer:

When completing all bankruptcy forms, including Schedule I bankruptcy form, you must complete them in full and with 100 percent accurate information. Leaving things off- like under the table income- can be grounds for having your bankruptcy dismissed. It can also be grounds for criminal penalties, like bankruptcy fraud. 

The need to include all income creates a sticky situation for you if you have been earning "under the table" income. When you are paid under the table, there is usually a reason for this and it usually means you are committing a crime or fraud of some type. Whether you are being paid under the table to try to evade your obligation to the IRS, or because you aren't really supposed to be working because you are receiving some kind of income based public benefit, in any case, you are likely committing fraud. This can make it seem attractive not to include this under-the-table income on your bankruptcy forms. 

This is a bad idea. Not including this income will jeopardize your bankruptcy. It is also likely to be discovered, since a very close look is usually taken at your finances in bankruptcy (a much closer look than would be taken by, say, the IRS unless you were actually involved in a full audit). 

Since there are a number of potential legal problems that can arise for you, before you fill out a bankruptcy form with under the table income, you will need to get a lawyer. A lawyer can help you to deal with the bankruptcy and also with any fallout that may come from disclosing illegally earned income. 

This article is provided for informational purposes only. If you need legal advice or representation,
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This site does not provide legal advice and users of this site should not interpret any of the information presented here as legal advice. The information provided merely conveys general information related to commonly asked legal questions. We are not a law firm and the employees responding to questions are not acting as your legal attorney. You should ultimately consult with a Lawyer for your case.

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