Side gigs are booming. With delivery, Etsy shops, and various other apps having a side gig is usually an easy way to score extra money, if needed. If you are considering bankruptcy you may be wondering how having a side gig may impact your filing.
When you file bankruptcy you need to list all of your assets, debts, income, and expenses, including from a side gig. As an example, let’s say you run an Etsy shop selling pictures you have painted. Assets you may have are stock on hand, supplies, funds owed to you from a painting you sold, and your Etsy platform page. Along with listing your assets, you will also disclose your income and any monthly expenses, including painting supplies, if you have any.
There are various places in the bankruptcy case you will need to disclose income and expenses from your side gig. You will list these not only in the income and expenses schedules, but also on the statement of financial affairs and the means test. Even if you have a full-time job and your side gig brings in hardly any funds, you will still need to project monthly income from the side gig or explain why there is none. On the means test your attorney will go through the last six months of income from your side gig, to determine an average.
Although side gigs do not normally make or break a bankruptcy case, always disclose them to your bankruptcy attorney. Your attorney will be able to go through the bankruptcy filing and your side gig in detail.
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If you have questions about bankruptcy and your side gig, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!
