Are UNEMPLOYMENT BENEFITS counted as income on the MEANS TEST?

[gman]

I received unemployment income this month. Is this counted as income in the 6 month average on the Means Test?

I am filing in the North Georgia district if that helps, as I understand the answer may vary by district.

[HHM]

It does vary by district. The default answer is YES, unless your district has ruled otherwise. The argument is that Unemployment benefits are in some way tied to Social Security and therefore excepted from counting as income.

[Pandora]

I dont know where you are located (district wise) in GA, however here in VA - yes..UI is counted as income for the 6 month look back and means testing.

[Fallonedward]

It does vary by district. The default answer is YES, unless your district has ruled otherwise. The argument is that Unemployment benefits are in some way tied to Social Security and therefore excepted from counting as income.

We just had an hour and 45 minute first consult with the lawyer that I'm confident we are going to hire. I have one more consult with another firm but thus far this one seems amazing.

At our consult the attorney told us that in Michigan our UI is tied to Social Security and does not count in our lookback and we very much qualify for a 7.

[tobee43]

i'm still sooooooooooo confused about how one can count a "temporary" income in the means test?????

if you are going for a chapter 13...and that amount is figured in...what happens when it stops...you file a chapter 7???? or can you??? inquiring minds think they know...LOL!! please let us know the REAL answer?

[Fallonedward]

i'm still sooooooooooo confused about how one can count a "temporary" income in the means test?????

if you are going for a chapter 13...and that amount is figured in...what happens when it stops...you file a chapter 7???? or can you??? inquiring minds think they know...LOL!! please let us know the REAL answer?

Tobee: for us, we are filing a 7 and my concern was that if I had to include the UI it would put us a bit over the median income. I was very happy when the attorney told us they do not use the UI in the lookback for our area.

Our first attorney wanted to push us into a 13 and that was my question as well ""what happens when it stops""" and the former attorney told us we would cross that bridge when we got to it. Not an answear I was comfortable with so we chose not to use that team of attorney's. It makes no sense to use something that ends at a specfic time frame.

[tobee43]

fallon...us too....so we changed attorney's...who, by the way FOUGHT the unemployment amount with the trustee's office tooth and nail and apparently won.

we also did a 7....and it looks like a lot of cash coming in...however, it's still ONLY temp...it's NUTs...lucky we had a GREAT attorney...for ONCE!

[Fallonedward]

fallon...us too....so we changed attorney's...who, by the way FOUGHT the unemployment amount with the trustee's office tooth and nail and apparently won.

we also did a 7....and it looks like a lot of cash coming in...however, it's still ONLY temp...it's NUTs...lucky we had a GREAT attorney...for ONCE!

I have learned thru this forum that it is very important to shop around for a GREAT attorney as it will pay back three fold.

congrats on your discharge

[HHM]

Unfortunately, it is one of the unintended consequences of the means test.

Most of the time, you can argue around it or if you have enough time, and you are are UI long enough, the amount averages out so you are under median.

[poormama]

At our consult the attorney told us that in Michigan our UI is tied to Social Security and does not count in our lookback and we very much qualify for a 7.

I'm in MI as well, our attorney told us to wait until my u/e was done or I was done collecting to file. We are over income wise but pass the means test with our expenses - without u/e. I have enough weeks to collect into November but I'm going to stop in mid-Sept so that we can file ASAP. We need to get some of the u/e to help for the rental down payment.

[tobee43]

hhm...you forgot to add....OR have an excellent attorney who can argue the point...it that not really the point here??

if you retain an excellent attorney he or she will HELP you make it thru this maze!! promise.....

interview MANY...do not settle!

[Fallonedward]

I'm in MI as well, our attorney told us to wait until my u/e was done or I was done collecting to file. We are over income wise but pass the means test with our expenses - without u/e. I have enough weeks to collect into November but I'm going to stop in mid-Sept so that we can file ASAP. We need to get some of the u/e to help for the rental down payment.

Wow, that is interesting that we are both in Michigan and got different answears to the UI. With just my income we are below the median (by about 10K) but when we added in UI were were above.

Our attorney told us to file in October when our severence drops off but never said anything about waiting for the UI to drop off...

Ugh, now I'm a bit nervous

[hawk25]

I'm in MI as well, our attorney told us to wait until my u/e was done or I was done collecting to file. We are over income wise but pass the means test with our expenses - without u/e. I have enough weeks to collect into November but I'm going to stop in mid-Sept so that we can file ASAP. We need to get some of the u/e to help for the rental down payment.

I am in a similar situation. My wife is currently getting unemployment and there's enough for a few more months. So the lawyer said it's ok to voluntarily stop collecting unemployment even if there are funds left in the account? I dont see why they would object to that but I wanted to make sure myself.

[poormama]

I am in a similar situation. My wife is currently getting unemployment and there's enough for a few more months. So the lawyer said it's ok to voluntarily stop collecting unemployment even if there are funds left in the account? I dont see why they would object to that but I wanted to make sure myself.

Maybe our situation is that we are above the median income. I saw someone in another thread said that they stopped theirs until after the 341 and went back and claimed their back u/e. I asked my lawyer about that and she said that it's not on the up and up to do that. But it's fine to stop taking the payment anytime.

[Fallonedward]

Maybe our situation is that we are above the median income. I saw someone in another thread said that they stopped theirs until after the 341 and went back and claimed their back u/e. I asked my lawyer about that and she said that it's not on the up and up to do that. But it's fine to stop taking the payment anytime.

I bet that is why we got the advice we did since we are under median