Some questions

[UghUghUgh]

1.) Why do they need 2 years of tax returns? What are they looking at there?

2.) When I look at 2009 tax return I am $1,002 over the median. Is that the figure that is used to figure if we are over the median or is it the last 6 months of paystubs and then doing the math to figure out what we have made this year? I figure we are about 25k less in 2010 than in 2009. If they DO use the 2009 figure on the return then can I still qualify for a Ch7 if I have no disposable income on schedules I and J?

Thanks!!

[drowning123]

Last 6 months. That's what my attorney used. Everything you earned in 6 months (including overtime, bonus, etc.), then it's divided by 6, then multiplied by 12. Unbelievable. This means that, for example, if your true salary is $50,000 a year, then 6 months should be $25,000, but it doesn't always work that way. At my job, we can sell back vacation time, which I did, so that was included in my income. The paycheck for that month was almost doubled, so that pushed up my income a bit. Sucks.

[UghUghUgh]

Thank you drowning! That makes me feel a bit better.

[tobee43]

ugh...not to worry...it's, i believe what's your income at the time of the filing...at least that is what is was where we filed.

actually i insisted on submitting 3 years of back taxes so the trustee's office could see how our pay was cut and cut and CUT over the past few years.

for us going from really high amounts listed on our 1040's to unemployment ins., pension and ss....we talkin.....down the tubes for us!!

i think it's more not for gross income or net income... BUT for checkin if one is hiding property or interest on investments...i think..so you have nothing to worry about.

they could see if you had stocks let say and you had interest or divs... on the stocks of over 1500..maybe they want to know where those stocks are.

[tcreegan]

Bapcpa

Hi all, Hi uhg,

You can thank Congress for the two years of tax returns and the 'average the 6 months prior to filing' bit. The trustee isn't looking for something, these two items are required by the new BK laws.

Tom in Colo

[UghUghUgh]

Thanks Tom!