Unemployment Benefits Must be included in pre-filing income calcs?

[doni49]

I'm looking through judicial decisions made my my district's judges and just came across one that I find disconcerting. The district's Chief Judge is listed as having made this ruling.

Here's the written opinion. It's regarding a Ch13 case but would it also affect a Ch7 case? Will I have to include my UE benefits? Since that's been my ONLY source of income for the past 10 months, I thought I was good to go.

Thanks.

http://www.mow.uscourts.gov/bankrupt...dow/overby.pdf

P.S. Following is the description of the decision (copy/pasted from the court's web site).

The Court sustains trustee’s objections to confirmation of Chapter 13 plan holding that unemployment compensation is not a benefit received under the Social Security Act and must, therefore, be included in the calculation of current monthly income. Unemployment compensation placed the debtors above median income and made the applicable commitment period five years.

[justbroke]

The only income that clearly doesn't count in the calculation of "current monthly income" (CMI) is benefits from the Social Security Act (SSA) or some special war benefits (related to war crimes). That's it. Some jurisdictions opined that Unemployment Insurance (UI) is a part of the SSA and therefore not CMI. Others, the majority, say that it's NOT a benefit of the SSA and therefore is CMI.

You must be in a District/Circuit in which UA is counted as CMI. As such, you must include it as income. Some attorneys will actually try to challenge the United States Trustee (UST) by still claiming that it's a benefit of the SSA and just see if the UST comes after the debtor (complains by filing a motion).

If you've only been on UI, then you must be under the median. Shouldn't really affect your case.

[doni49]

If you've only been on UI, then you must be under the median. Shouldn't really affect your case.

I HOPE so. But I'm not too sure. I used to live in SE PA and worked in NJ. I moved here to Missouri to be near family (I had been wanting to move near them for quite a while and thought it was a good time to do it). My UI benefit is based on what I USED to make working in a Civil Engineering company in the Princeton area. I met with a credit counselor in July and was told that my UI benefit is about double what people typically get around here. But the UI benefits won't last forever and if/when I DO find a job, I'll be making considerably less than what I am on UI.

As long as my income stays as it is right now, YES I most likely could scrape by and pay everyone the minimums. That is IF they were all willing to work with me on the late payments and fees. But as soon as my income drops, no way. And I expect that pretty soon, my UI benefit amount will drop as I'll be in one of those extension tiers.

I stopped paying everyone in July because I felt I was going to HAVE to file so why shell out the money paying debts that are going to be discharged. Maybe the trustee would recognize that the UI couldn't possibly last and income going forward will not support a pmt plan? Here's hopin!

If I were to file knowing all of this, when would it come up? At the 341?

TIA!

[doni49]

Whew. I just went and used Nolo's free online means test. Of course the first step is to give it my zip code. When I did, it told me that the median income for my area is $3292 per month. Even with my "high UI rate", I'm still WEEEELLLLL below that number!

Thanks for the help!

[justbroke]

I was just about to tell you that there's no way being on unemployment, that you could be over the median, unless you were married and your spouse was bringing in additional household income. I was also going to suggest that you try the online means test at Legal Consumer.

I see that you found that site.