WI - Does unemployment count as income on Means Test?

[youngnbroke]

I live in Wisconsin and was wondering if anyone knows whether or not unemployment compensation is counted as income on the means test? I have not be able to find a definitive answer to this question!

[AngelinaCat]

As unfair as it may seem, yes, UC is considered income and you must factor it in.

[SeattleBK]

No, if it is employment compension received from the government

Employment compensation received from the government is a benefit under the Social Security Act.

Therefore, not included in income on the means test, but it should be listed on the Means test calculation form: Form B22A, line 9, to the left of the form in the box that says: debtor.

At least, that is what I did for my Chapter 7 when I filed Pro Se. My Chapter 7 was successful and discharged May of 2009 and I never had any issues.

This might be helpful:

"The Social Security Act of 1935 (Public Law 74-271) created the Federal-State Unemployment Compensation (UC) Program. The program has two main objectives: (1) to provide temporary and partial wage replacement to involuntarily unemployed workers who were recently employed; and (2) to help stabilize the economy during recessions."

[AngelinaCat]

I may be wrong, but our attorney insisted on having every paystub and pay advice for everything i/we received. She was particularly ticked that I could not provide an itemized print-out from the State of Florida for every benefit I got. All they would provide was a summary on their website. She had to be satisfied with the deposit statements in our CU's checking account statements. Also the trustee asked us at our 341 "who gets the Unemployment Compensation?"

[AngelinaCat]

I should add that I was an employee of a small municipality, so am covered under State Laws. We are finding out that Federal Employees are covered under very different laws. 'Hub's daughter is a postal worker 'enjoying' her own nightmare right now--including the fact that she could almost not find an attorney to take her case: "Oh, you are a Federal employee? Different laws cover you, and I'm not going to take the case." Click!

[SeattleBK]

Yes, all forms of income are needed, but not included in calculations for Means Test.

Also,

Note: unemployment compensation is included on Schedule I, and then the total income which includes unemployment compensation is transferred to Schedule J, but unemployment compensation from the government is not used in the calculations on the means test.

[youngnbroke]

Thanks for all your input...I have read also that UC is covered under the social security act, therefore would NOT be included as "income" on the means test, but I have also read through posts on this forum where some have argued that it is included. At this point, I am crossing my fngers that it will not count because otherwise we will be forced into a 13. Thanks again, and I suppose i will just have to wait til our next meeting with the attorney to find out FOR SURE!

[AngelinaCat]

In that UC is only temporary--no matter how many times it might be renewed, I don't see how your UC can force you into a Ch13. You only get a fraction of what your original salary/wages were, correct? Yes, this is a good question for your attorney.

We had been planning for a CH13, even though the pre-bk counselor ran our numbers and told us we were better suited for a CH7. When I lost my FT job, and started drawing UC, it was a 'slam/dunk'. We had no choice but to file a Ch7.

[GettingGoing]

In that UC is only temporary--no matter how many times it might be renewed, I don't see how your UC can force you into a Ch13. You only get a fraction of what your original salary/wages were, correct? Yes, this is a good question for your attorney.

We had been planning for a CH13, even though the pre-bk counselor ran our numbers and told us we were better suited for a CH7. When I lost my FT job, and started drawing UC, it was a 'slam/dunk'. We had no choice but to file a Ch7.

I should be able to tell you next Monday after our 341 if in fact UC can force a couple filing a ch7 into a ch13. On the means test we were 30k under the state median so we were fine there however our positive DMI on schJ which includes my UC that should be ending in about 6 months may just push us into a ch13. After the UC is gone we end up -1200/month dmi so we would have to convert to a 7 anyway.

[AngelinaCat]

I should be able to tell you next Monday after our 341 if in fact UC can force a couple filing a ch7 into a ch13. On the means test we were 30k under the state median so we were fine there however our positive DMI on schJ which includes my UC that should be ending in about 6 months may just push us into a ch13. After the UC is gone we end up -1200/month dmi so we would have to convert to a 7 anyway.

Thank you GG, I will be pleased to read what you learn. Thanks again!

[GettingGoing]

Thank you GG, I will be pleased to read what you learn. Thanks again!

I will be sure to post an update after my 341 although if the trustee does try to force us into a 13 you may need to edit out some profanity.

[AngelinaCat]

I will be sure to post an update after my 341 although if the trustee does try to force us into a 13 you may need to edit out some profanity.

I can understand THAT! Lets hope it doesn't come to that!!

[BCA2009]

I can understand THAT! Lets hope it doesn't come to that!!

In the nothern district of Florida our attorney said they include UC. So we had to wait until after our 341 for my wife to file. We waited 4 months after she was eligible to make the first claim.

[GettingGoing]

In the nothern district of Florida our attorney said they include UC. So we had to wait until after our 341 for my wife to file. We waited 4 months after she was eligible to make the first claim.

Hopefully its different in my district. Counting unemployment as long term income is just not fair. Not only am I bringing home $1000 less per month than I was just 8 months ago I know that my UI will be cut off in 6 months or so unless I can find a job which isn't looking like its going to happen. I have put in at least 80 applications and have received less than 5 responses and they were just form letters saying I am sorry and we will keep your app on file.

[Faust]

Yes.