Cashing in US Savings Bonds counted as income?

[Sleepy]

This forum is an awesome wealth of information! I've been reading a few great books on ch.7 but there is nothing like real life experience!


Background: We are close to the median here in Colorado but my wages will be dropping for the next few months so by around July we should be close to filing, with our numbers well enough.

Question: We just cashed in about 5K in US savings bonds. Is this cash counted as "regular monthly income" in the 6 mo. look back means test? Or is it like using your savings, not counted as regular income but maybe included in ones 2yr. financial statement of affairs? This money will be used for "legit" purposes as a new bed, atty fees, and maybe a car down payment before filing for ch.7.

Thanks! Sleepy

[JoeBankrupt33]

I don't know if it is considered income. Hopefully somebody else knows. But, being in Colorado, I'm pretty sure they would have taken your savings bonds as an asset of the estate, so maybe it's better that you cashed them in. You may just want to wait a couple more months (beyond July) so there is no question.

[CCCrazy]

The interest earned on those bonds is counted as income in the 6 month look back period.

[Sleepy]

Thanks Crazy & Joe, After further thought I beleive your both right. Oh well, whats a few more months wait!

[JRScott]

Joe is correct, the interest is considered income.