Q RE: Means Test

[doni49]

I have been unemployed since 12/09. I am currently looking for a BK atty. But I do have a preliminary Q that I'm hoping someone here can answer--I'd rather not wait until I find an atty.

Anyway--I've read that the means test looks at income from the 6 month period prior to filing.

It looks like I'll be taking a job as a custodian for the local school district (expect to do so in the next few weeks). The income from that will be significantly less than what I've been getting in unemployment benefits. Those UE benefits were already a lot less than what I made before losing my job.

Would I really be denied a discharge just because I USED to make so much more?

TIA!

[JSFleischman]

If you were to file NOW, then the means test would look to your average income from January 2010 - June 2010.

In some courts, unemployment compensation is not tallied as part of the means test inasmuch as it is mandated under the Social Security Act and therefore not counted for means testing. That's how we do it here in NY.

[doni49]

Thanks Jay. That's good to hear. I've been really concerned since i read that they look at the past 6 months. But if they don't include UE income in the means test, then my income was ZERO!

[JSFleischman]

Even if they do, your gross income would be $405 per week maximum. I'm thinking that's probably well below your state median income, no?

[doni49]

My UE benefit is 584/wk. I was living in the Philly area and working in NJ with a good paying/secure job (or so I thought). The 584 (gross) is less than what my NET used to be.

I moved in with family (in Missouri) because I could no longer pay the rent--the landlord had already obtained a judgement for possession against me and I moved about 2 weeks before they would have put me to the curb. Plus for a long time I had been wanting to move here to be near them and thought I'd find it easier to hunt for a job in my field if I actually lived here.

It looks like I'm going to have to take this custodian job (minimum wage) and will probably be there for the next 12-18 months. And even if I were to find a job in my field today, I've found that the going rate is about 2 thirds of what I was making on my last job.

[SMinGA]

The means test is only part of the process - actual income at time of filing is also important. Being over median income can make filing a little more complicated - namely needing an attorney willing to work for you and not just collect an easy paycheck.

Worst case scenario though, is delay filing until after you are in the new job.

[Fallonedward]

My UE benefit is 584/wk. I was living in the Philly area and working in NJ with a good paying/secure job (or so I thought). The 584 (gross) is less than what my NET used to be.

I moved in with family (in Missouri) because I could no longer pay the rent--the landlord had already obtained a judgement for possession against me and I moved about 2 weeks before they would have put me to the curb. Plus for a long time I had been wanting to move here to be near them and thought I'd find it easier to hunt for a job in my field if I actually lived here.

It looks like I'm going to have to take this custodian job (minimum wage) and will probably be there for the next 12-18 months. And even if I were to find a job in my field today, I've found that the going rate is about 2 thirds of what I was making on my last job.

Dang, I wish our UE benefits were that generous in Michigan... we are at $350/week

[tcreegan]

under median income

Hi doni49,

My UE benefit is 584/wk. I was living in the Philly area

I don't think you have anything to worry about, median income in Philly is around $930 a week.

I think you can relax about passing the means test....

Tom in Colo