unemployment benefits and chapter 7

[mrval]

I have read that unemployment benefits can be considered a "benefit received under the Social Security Act."

I think we are over on income if my CA state unemployment is counted towards income, but it seems like we could list unemployment separately. Im still new to this, doing research and talking to lawyers so go easy on me lol.

[mrval]

OK- did a search and found a lot of info here.

The first attorney we saw thought UI was counted as income. Does anyone know for sure that it counts in CA?

We have several more meetings with lawyers, ill be sure to ask them also.

It just seems stupid that UI could push us over the bubble for chapter 7.

[gmk]

There have been discussions and court opinions on this because of the relationship UI has with SS. So it may well be district specific. But most of what I read is that generally UI is income.

The NOLO book says that if you fail the means test with it included than back it out and put it in the Social Security area on form B22A and see what happens. Personally, I wouldn't do that as I don't want any surprises or risk of getting pushed into a 13.

[justbroke]

This is indeed District specific. The Bankruptcy Code (in 11 USC 101) defines "current monthly income" as income from all sources. The only income not included are those that are part of the Social Security Act and certain payments related to war crimes or war reparations. Most Districts (the majority) have found that Unemployment Insurance is NOT income from the Social Security Act, and the minority disagrees.

So, if your attorney says that it is income, then it is. Your attorney could just "ignore" the income (not include it) and see if the Trustee fights it.

[neorecon]

For us it wasn't used on the means test, but was included on our schedules.