Income definition for means test

[browneyes]

JEM,

I think the income would only count toward your 6-month lookback as far as above/below median.

It wouldn't necessarily be counted toward your chapter 13 budget because that is looking at likely income to continue. That is my understanding anyway.

The look back is 6 months, so the sale would drop off after 6.

Unfortunately, we weren't able to file in December but this $1000 came in December. Wouldn't ya know, it's putting us just a bit over the median? We are planning on filing a 7 but I think we should try to do a 13 for the mortgage and what we can on CC, not sure yet. I don't want to go 5 years because if you are under median you only go 3 years in the plan.

[JEM]

JEM,

I think the income would only count toward your 6-month lookback as far as above/below median.

It wouldn't necessarily be counted toward your chapter 13 budget because that is looking at likely income to continue. That is my understanding anyway.

The look back is 6 months, so the sale would drop off after 6.

Unfortunately, we weren't able to file in December but this $1000 came in December. Wouldn't ya know, it's putting us just a bit over the median? We are planning on filing a 7 but I think we should try to do a 13 for the mortgage and what we can on CC, not sure yet. I don't want to go 5 years because if you are under median you only go 3 years in the plan.

Ooookkkkk, THAT makes sense.

[backtoschool]

The income would not be counted towards your chapter 13 plan, it would only be considered income in regards to the means test. And yes, many people have to wait 6 months to file for the income to drop from their six month look back period if they get a large payment from selling something or get a bonus or something.

There are some trustees that would not consider it income at all, but the trustees in my district specifically look at bank statements for large deposits.

Also, it is not a science, but is a matter of degree. Selling your used books on ebay once may not be considered income, but selling your mercedes for 10k probably would be considered income. I wish it were more exact, but bankruptcy is more of an art than a science at this point.

[JEM]

The income would not be counted towards your chapter 13 plan, it would only be considered income in regards to the means test. And yes, many people have to wait 6 months to file for the income to drop from their six month look back period if they get a large payment from selling something or get a bonus or something.

There are some trustees that would not consider it income at all, but the trustees in my district specifically look at bank statements for large deposits.

Also, it is not a science, but is a matter of degree. Selling your used books on ebay once may not be considered income, but selling your mercedes for 10k probably would be considered income. I wish it were more exact, but bankruptcy is more of an art than a science at this point.

It's *so* frustrating too.

Of all the times for us to sell a used car--and for hubby to be training at work and getting lots of OT...it would be *now*. Ironic in a way.

That's ok. We'll just wait it out. Worst case, we wait till June 1st to file vs. April 1st, for the $2000 from the truck sale to fall off.

It makes me a little uneasy, thinking we may get sued before then...but....

(We stopped paying most CC's in Nov...a few got payments in the first couple of days in Nov...) That would be 6-7 months w/o paying.

But I think we'll be ok. New year, new attitude. Right?