Covid-19 Income and the Means Test

[Xar77]

Just had a question to anyone that happens to know about the means test. I've read that the blanket stimulus payments (such as the $1200 per couple) don't count towards income, but what about the extra weekly amount ($600 per week in July, $300 a week in Aug / Sep)? What about any other federal extensions such as PEUC (Pandemic Emergency Unemployment Compensation). Since these are federal programs do they not count as they are covid related? or does EVERYTHING count? Just wondering if anyone has been through this here, I'm tearing my hair out...

[justbroke]

There is nothing in the CARES Act that I have read which excludes unemployment income from the definition of "current monthly income" (CMI) when it comes to the means test. The only thing that was explicitly excluded from the CMI definition was the stimulus payment itself.

[Scarlett1234]

Just had a question to anyone that happens to know about the means test. I've read that the blanket stimulus payments (such as the $1200 per couple) don't count towards income, but what about the extra weekly amount ($600 per week in July, $300 a week in Aug / Sep)? What about any other federal extensions such as PEUC (Pandemic Emergency Unemployment Compensation). Since these are federal programs do they not count as they are covid related? or does EVERYTHING count? Just wondering if anyone has been through this here, I'm tearing my hair out...

I have the same question , have you been able to find out the answer?

[justbroke]

Trustees will go by the legal definition of "current monthly income' (CMI) when it comes to bankruptcy. The nugget is buried in the changes to the definition of CMI in the code. It was amended as follows;

11 USC 101 -- "Current Monthly Income" excludes... Payments made under Federal law relating to the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) with respect to the coronavirus disease 2019 (COVID–19).

It was also specifically modified in the section of the bankruptcy code which deals with Chapter 13s.

The thing is that I have read it interpreted both ways. That the extended unemployment benefits may be counted as CMI and others that say that the federal government specific kicker should not be counted as CMI or income. Until cases start trickling in and we see how the Trustees act, we just won't have a firm answer.

After re-reading an update from LexisNexis, it seems that "payments made under Federal" law would include that UI kicker (the extra $300/600).

[Scarlett1234]

Thank you for your continuous help.

[Ekop785]

Thank you for posting all this, I had been wondering about this exact issue! It was my understanding that the kicker was still counted as CMI, but that the trustee wouldn't count it as 'disposable' income (so include it, but it won't be counted against you?). I am including it as income to be safe. For the means test in my case, will make zero difference whether I include it or not, but still not sure if I am supposed to include it.

On schedule I, I have put it under unemployment compensation, but not sure that is the correct way to do it.