How do they verify your income for the past 6 months if it is variable?

[kl030505]

If you actually look at the exact amount of income we have had in the last 6 months we are WELL below the median income for a family of 3 in MA. However, if I only submit the latest pay stubs and they calculate it based on that it might be different (My husband just started a new job that is almost double what he was making before). How do they calculate your past 6 months income?

[deesown]

im pretty sure they take your gross NOT net income for 6 months..

[kl030505]

Right, gross would be fine - we'll still be well below the median income, but the gross income varied from week to week. My husband was an hourly employee with zero benefits and his hours varied greatly. Some pay periods (2 weeks of work) he got paid $450, some pay periods he got $700. And, he was in school for at least one month in the last 6 months and his paychecks then were even more dismal I was lucky if it was $600/month.

So, how do they determine past 6 month income? Do they avg it out? Can I bring the pay stubs for that time period and add up the gross so it is exact?

[jec]

they take all 6 months of income and add it all together (before taxes and dedeuction, those are listed later on the means test form. ) the median income tables are before dedcutions

so say you file in July just to make it easy

you give all pay stubs jan - july and then it is divided by 6 and this gives you the average monthly income

http://www.legalconsumer.com/bankruptcy/br_home.php

this is a good link and it walks you thru it but you need a lawyer to advice you on your district rules

[nc73]

Right, gross would be fine - we'll still be well below the median income, but the gross income varied from week to week. My husband was an hourly employee with zero benefits and his hours varied greatly. Some pay periods (2 weeks of work) he got paid $450, some pay periods he got $700. And, he was in school for at least one month in the last 6 months and his paychecks then were even more dismal I was lucky if it was $600/month.

So, how do they determine past 6 month income? Do they avg it out? Can I bring the pay stubs for that time period and add up the gross so it is exact?

It doesn't matter just average it out for the last 6 months.

[deesown]

they take all 6 months of income and add it all together (before taxes and dedeuction, those are listed later on the means test form. ) the median income tables are before dedcutions

so say you file in July just to make it easy

you give all pay stubs jan - july and then it is divided by 6 and this gives you the average monthly income

http://www.legalconsumer.com/bankruptcy/br_home.php

this is a good link and it walks you thru it but you need a lawyer to advice you on your district rules

Why is it gross before taxes? It's not like we get to take that home with us.!

[nc73]

Why is it gross before taxes? It's not like we get to take that home with us.!

Because the median income figure is before taxes. Makes no sense I know..