Means Test Question

[azballer]

I am currently trying to figure out when to file my chapter 7 and have a quick question:

The means test requires the previous 6 calendar months of income. If I wait until early November to file, I run into a sticky situation...I have a $14,600 commission check that I cashed on 5/4. The date the check was issued was 4/30. When is this $$$ considered income? If the date of the check is what counts, the means test will go from May to October and the $14,600 will not count. I will then be under the median income level to file (I should still qualify to file when looking at an initial means test if the $14k counts, but it is close).

As far as waiting until December to file...not sure the creditors will wait that long. My wife and I stopped paying our mortgages, autos and credit cards in late May. We are getting rid of two cars and are not going to reaffirm the mortgages (although we will have the first current when we file with a modification and will let the second take a flying leap).

Thanks guys...appreciate the help.

[epiphany]

You can go by the date on the check but could be asked to explain that income if your bank account is examined.

Good luck to you,

ep

[azballer]

You can go by the date on the check but could be asked to explain that income if your bank account is examined.

Good luck to you,

ep

With obligations of almost $11k per month at the time I don't think that will be a problem. My wife and I are both in real estate...when times were good it didn't seem like it would ever end and we lived like it. Now, it is evident how much all of those luxuries were not needed. Looking forward to a fresh start! Thanks for the response!

[SMinGA]

Should go by when you were paid. In this day & age many do direct deposit - but for those that don't, it would be too easy to game the system if the deposit/cashout date was used on the means test.

[gmk]

Think of it like this, if the check was issued on the 31st of December and you didn't deposit it until mid-January, your w2 would show that income for the prior year. Go by the date of issuance. Timing of check issuance screwed me with the 3 paycheck in a month thing for bi-weekly pay.

[iv65536]

Think of it like this, if the check was issued on the 31st of December and you didn't deposit it until mid-January, your w2 would show that income for the prior year. Go by the date of issuance. Timing of check issuance screwed me with the 3 paycheck in a month thing for bi-weekly pay.

The way this means test is written, there are four month combinations that can result in a means test that only has 12 biweekly paychecks. Not surprisingly, all four of these combinations include a February of a non-leap year. Those combinations are:

September through February
November through April
January through June
February through July

The ones that can produce a 14th check in six calendar months on a biweekly cycle are any that do not include February.