Bankruptcy as a 1099 Contractor or Gig Worker

Bankruptcy as a 1099 Contractor or Gig Worker

As a 1099 contractor or gig worker, you are a vital part of the American economy. You provide essential services, often with a level of flexibility and expertise that traditional employees cannot. However, like any other wage earner, you may face financial hardships that lead you to consider bankruptcy.

As Omar Zambrano, an attorney at law specializing in helping families who are laid off, out of work, or behind on payments, I am here to guide you through this complex process.

Bankruptcy is a legal process that allows individuals and businesses to eliminate or repay some or all of their debts under the protection of the Federal Bankruptcy Court. There are different types of bankruptcy, including Chapter 7, Chapter 11, and Chapter 13, each with its own set of rules and procedures.

Bankruptcy for 1099 Contractors

As a 1099 contractor, you are just as entitled to bankruptcy relief as any other wage earner. However, the process can be a bit more complicated due to the need to successfully demonstrate your income. This can be handled with a bit of patience and attention to detail.

The main difference between bankruptcy filing for 1099 contractors and regular employees lies in the income verification process. As a 1099 contractor, you will need to calculate your income on two required bankruptcy forms: the Chapter 7 means test form and Schedule I, your income. You will also need to determine and prove your average income for the six months before the bankruptcy filing.

Filing for bankruptcy can have significant impacts on your business and personal life. It can affect your credit score, future employment, and business opportunities. However, it can also provide a fresh start by eliminating debts and stopping creditor harassment.

Navigating bankruptcy as a 1099 contractor can be challenging, but with the right guidance, it can be a manageable process. Here at Omar Zambrano Attorney at Law, we specialize in helping individuals like you navigate through this process. We offer free consultations to help you understand your options and make informed decisions.

Bankruptcy is a complex process, but it's important to remember that you are not alone. As a 1099 contractor, you have unique considerations, but you also have the same rights to debt relief as any other individual.

If you're facing financial hardship, don't hesitate to reach out to us at 626-338-5505. We're here to help you eliminate debt and get back on your feet. Remember, bankruptcy is not the end, it's a new beginning. Let us guide you through this process and help you start a new chapter in your life.