Question about B106 I income calculation

[travel1000]

It is very clear that currently monthly income form B122A1 requires calculating 6 months income before filing. For form B106 I is not clear. For the instruction begin, it could be understood that for current month. One YouTube video talked about it. Example was given one doctor lost his job on filling month. His b106 I income is zero. But later part of instruction b106I suggests using 12 months income for calculation. Search Internet, one websites suggests 6 months. In Indiana esr websites, after filling, need to send paystubs or other evidence of proof income within 60 days before filing. So what is it for calculation of income in form b106I? 12 months? 6 months?2 months or 60days?or current month only?or whatever you choose?

[justbroke]

Do you have a guidebook? Some recommend Nolo's How to File for Chapter 7. You may also want to see if your court or local Bar Association has a Pro Bono or a Pro Se clinic which can help you. Completing Schedule I and Schedule J is an art form. I can't tell you exactly how to complete those forms. Schedule I should be self explanatory since it is your snapshot (today/filing date) look at your income. Schedule J is actually the more difficult form to complete as a Pro Se.

Generally speaking Schedule I should be an actual look at your annualize "current" income but normalized to a one-month view. In other words, your average income. Be careful because income tax refunds are actually income. Over-withholding will be added back to your income by the Trustee so you should do that too to get the correct monthly income.

I highly suggest getting a guidebook. There are some questions that are tough to answer without providing legal advice. I would be more worried about Schedule J, but Schedule I must be completely with that current/forward-looking view in mind.

[travel1000]

Thanks. I am not sure that I understood you correctly. It is current income at moment then annualize it, so basically, it should calculate current month only with looking forward.
for the b106J, my understanding is that there is personal maximum allowance. Need to tweak for dmi. It is also for current. Month estimate.
US. Trustee web page shows maximum allowance in some expenses category. But instructions said it for b122a etc. I didn't see b106j. It is suitable for b106j?

[travel1000]

[justbroke]

Schedule I and Schedule J are current (with an eye towards the future) look. Think of the Means Test (Form B22A/C) as a snapshot in the past. Schedule I and J are the current and future view.

For Schedule J, the Trustee will use the Means Testing allowances (maximums) as a guidepost. Schedule J can be difficult to navigate. You don't "tweak" it to get your DMI lower. If you mess up then the Trustee will say "gotcha" and you could be pushed into a Chapter 13. If you are significantly under-the-median, it is probably not likely that you'll be pushed into a Chapter 13. If you are close, though, and tweaking numbers then you'll probably get caught because a single $100 expense here and a $50 expense there could push you over $250/month in DMI.

Again, it's an art form and is why people hire an attorney unless they are under-the-median by a decent amount so that these tweaks would never show them with any significant DMI. Remember Schedule J is actual and not what you think you want to spend. It is not like the Means Test where you get include the entire actual amount for the expense categories. This is why it's so very specific to the individual.

For example, the Means Test may say you get $757/month rent allowance for a single person living in Podunk, Iowa (fictitious town in Des Moines County). However, Schedule J must reflect your actual rent. If that rent is $500/month you now have $257 in DMI that you didn't have on the Means Test.

Please check to see if you have access to a Pro Bono or Pro Se clinic in your district. They can at least look over what you've done and answer any legal questions.

[travel1000]

Thanks justbroke. You get very clear answer about schedule I and B122A1.
For B106J, for my understanding, it is actual expense spent in current month. So my interpretation is this expense is not maximum allowance expense. I guess I need documents to backup my expense. In case. No documents like food. And clothes, it should be reasonable and could
reference to maximum allowance.
My monthly income varies between 2000-3000$. I think it is quite bit below state income . My income comes from selling eBay. Chapter 7 primary consumer debt. I need to create profit loss statements.
thanks again.

[justbroke]

Yes, for Schedule J it is actual expense. Know that if your expense exceeds the IRS Financial Collection Standards (FCS) based on your area, household size, and other factors, the Trustee can question the expense that you list. The FCS is used to create those values on the Means Test that you see on the UST's website. (The UST takes the FCS and then makes them fit the language used in the Bankruptcy Code; the bankruptcy "allowances" come from the FCS.)

Generally you don't need documentation unless it exceeds the (FCS) standards. Since your income comes from a business, you'll be asked for more documentation than an ordinary W-2 debtor.

[travel1000]

Thanks justbroke. It is very clear and helpful answer. Read the online info, business income should create profit and lost statements. eBay has monthly report, I can download it, serve as proof income, create six months and current month profit and loss statements, I can provide last year 1099 form issued by eBay and last year tax return if needed.

One more question, Indiana after online filling, you need to send listed documents to court. One is paystub or other evidence of payment within 60days before filing,

• Copies of pay stubs (all payment advices or other evidence of payment, if any, received by the debtor from an employer within 60 days before the filing of the petition) or if pay stubs are not available or do not exist, a signed Payment Advice Cover Sheet/Statement in Lieu of Payment Advice.

May I submit for six months or more in this time or should I wait for request.
thanks

[justbroke]

There is no request. You are required to perform as the attorney of record. You should also contact the Chapter 7 Trustee, once assigned, and find out what they need before the 341 Meeting and where to send those documents. Not everything goes into the docket (filed with the court). (Paystubs do get filed with the court. Tax returns and other documents are generally sent to the Trustee.)

Have you determined if your district has a Pro Se or Pro Bono clinic? They can help with the process. You are 100% responsible for following the process if you are Pro Se.