Income Question.

[vrspartak]

Have a quick question before I file (hopefully next month). I work in education and only get paid 10 months out of the year. I make about 5818 per pay check, 58181 annually. That is over 10 months not 12, so in actuality I only earn 4848 per month (58181/12). When I calculate my income over the past 6 months (Sep-Feb), it appears that I make 5818 a month because that is on my paychecks, but I really don't.
-Does the trustee take this into consideration? Because I do not get paid July and August, I must put aside money from each check during the school year to account for those 2 months.
Will the trustee adjust my income to reflect how I get paid? Just curious as how this works, because I certainly do not make 69,816 per year (5818*12). I don't want it to appear that I am over the median when I file. Thanks for your help.

[OhioFiler]

For the means test you make whatever you actually earned in the previous 6 calendar months, the $5,818 times 6.

You will use your earning over 12 months divided by 12 ($4,848)for schedule I.

[vrspartak]

2 more questions.

Ok....does that mean if I don't pass the means test for Ch.7 because my expenses are not enough based on the 6 month calculation, am I still able to file Ch. 7 when they take a look at my real income?

Also, is there a place on any schedule to include money that is saved for my months when I will not be working?

[OhioFiler]

Ok....does that mean if I don't pass the means test for Ch.7 because my expenses are not enough based on the 6 month calculation, am I still able to file Ch. 7 when they take a look at my real income?

Also, is there a place on any schedule to include money that is saved for my months when I will not be working?

You can work yourself around the means test.

There is no exemption for saving money for future needs. The exemptions for your state are what they are.

[vrspartak]

You can work yourself around the means test.

There is no exemption for saving money for future needs. The exemptions for your state are what they are.

I think I understand.....I'm just trying to get my head around a question that will come up by the trustee about why there is money left over from each paycheck. Surely, he/she will understand it is because I have bills and rent in july and august.

[keepinitreal]

If you don't get paid during July or August, is there any way you can wait until September to file? Unfortunately if you would had filed last month you would have been able to include those 2 months in the 6-month look-back.

[vrspartak]

If you don't get paid during July or August, is there any way you can wait until September to file? Unfortunately if you would had filed last month you would have been able to include those 2 months in the 6-month look-back.

That's pretty much what I was thinking about....seems like the only way around my situation. Just seems silly that a person in my situation is expected to spend all of their money, then have nothing left for two months.

[jennilynn]

If your state doesn't allow for a cash exemption; then that money you set aside will have to be spent or lost to the trustee...

There's no way around it, even though you don't get paid over the summer, the only way to "save the money" is to exempt it if your exemptions are good in your state, OR you wait to file till September.