I am in the insurance business and I get paid commission. When I sell a policy, the insurance company advances 75% of the commission upfront (they pay me for 9 months worth of premium payments even if the client has only paid for the first month). As each month goes by and the client pays his / her premium, I "earn" the income. If the client stops paying or cancels their policy, then the commission is taken back and I'm left with a negative balance. My question is how is this type of income calculated for a means test?
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9/1/2009 - Finally made the decision to BK ($157,000 in unsecured debt). I will be talking with attorneys asap. -
That's fascinating, as I am wondering if this take-back appears as some kind of contingent, even unliquidated, liability too, while you labor under threat of it.
In a minor way I had wondered if, over the six months before filing, I am overbilled on something and they later give me the difference, if they count that as income as well. Perhaps that's a very simple version of this (or perhaps it's distractingly irrelevant, sorry).
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