How can they count unemployment wages as income?

[HAP]

When you don't know if you'll have a job after the wages run out? That's the question, I guess. I'm not avoiding getting a job - honestly. I've been looking and interviewing since August when I first lost my job and nothing yet. So how can they count unemployment wages in figuring out income for which chapter you'd qualify filing for?

Thanks in advance

[jaina]

Because unemployment wages ARE a form of income. It's money that you're being paid by the state. The fact that you're technically not employed is irrelevant to them.

[Flamingo]

When you don't know if you'll have a job after the wages run out? That's the question, I guess. I'm not avoiding getting a job - honestly. I've been looking and interviewing since August when I first lost my job and nothing yet. So how can they count unemployment wages in figuring out income for which chapter you'd qualify filing for?

Thanks in advance

Unemployment wages are taxable income and have to be reported as income on your tax return for the year received and listed as income for any other purpose.

[HAP]

Yes, I realize all that. I guess I meant to ask since it is only for a specific period of time - if it is recommeded filing a chapter 13 and you need a steady income - how can they say unemployment wages are steady income when they will eventually run out? Guess I'll be doing Wal-mart if no other job in my field comes through after they run out.

[Flamingo]

Yes, I realize all that. I guess I meant to ask since it is only for a specific period of time - if it is recommeded filing a chapter 13 and you need a steady income - how can they say unemployment wages are steady income when they will eventually run out? Guess I'll be doing Wal-mart if no other job in my field comes through after they run out.

You will be asked for income for a specific period of time prior to your filing. If your unemployment should happen to fall in that period, you will have to report it and show evidence of when it started and ended. It will be taken into consideration that it does end and will not be continual.

[HAP]

Thank you for your responses.

[CindyLou]

I would not recommend filing a 13 based on unemployment income. That's just my opinion.

[HAP]

It could go either way (hopefully towards a 7 obviously) but one consult I had said we make pretty good money right now (this is counting unemployment - yeah 400/week in UE before taxes is friggin' great money) and we wouldn't be able to file a chapter 7. Note that this isn't the attorney's office I'll be retaining as this was a paralegal that told me this because I guess the attorney was to busy to meet with anyone for the measley free consultation.

[tay666]

Well, if you think about it, income from an actual job isn't guaranteed to continue either.
You could be downsized next month.
Only difference is, that with unemployement, you know when it will stop.