2 Months or 6 months?

[chloe0724]

Ok, so my attorney told me that for 13 you only need 2 months of prior income, but for 7 you need 6. I've been reading on here that you need 6 either way. What's the right answer?

My concern is that I sometimes get a bonus at my job (but it's not guarenteed) and if I go back 6 months that will be in it and calculated into the plan. I can't have it calculated because I can't rely on it.

This whole process is so scary!!!

[SwimminUpStream]

We had to provide paystubs for 6 months for our 13. Stunk because in Dec. I got paid for unused vacation time as well as 1,000 Christmas Bonus. So, they took all of that into account for my "average" pay. Does not seem right since I do not know how much unused vacation time I will have this year or if I will even have a bonus like that.

[lrprn]

Ok, so my attorney told me that for 13 you only need 2 months of prior income, but for 7 you need 6. I've been reading on here that you need 6 either way. What's the right answer?

Chloe, there's a tremendous variation in Ch 13 practices across the US. Although the law does say six months of income, sounds like in your local court using two months of income is the practice.

If you are a straightforward Ch 7 with well below the median income and you have no hidden assets or a large amount of income that would be left off from the four months not counted that would push you over the median significantly, then there's little to worry about here.

[HHM]

The means test determines if you "can" pay, but schedule I & J determine the "specific amount" that you will pay. For determining the actual plan payment, you only really need recent income that is more indicative of your "future" ability to pay.

Also, the "look back" period is 6 months, you don't always need 6 months worth of pay stubs. Most Payroll advices give a persons year to date income, so the attorney is probably just going to calculate the 6 months of annual income using the year to date number on your "recent" pay stubs.

[kpapt]

Does anybody know what's the median income in Virginia supposed to be?

[lrprn]

Does anybody know what's the median income in Virginia supposed to be?

Here you go - the current median income tables for the various family sizes in all the states - http://www.usdoj.gov/ust/eo/bapcpa/2...come_table.htm

[kpapt]

lrprn, Thank you yet again Sir for that link. You have been most helpful as always.
Quick question, is that income before tax and other deductions or after?

[lrprn]

Quick question, is that income before tax and other deductions or after?

It's gross income before taxes and other deductions.

[Flamingo]

Ok, so my attorney told me that for 13 you only need 2 months of prior income, but for 7 you need 6. I've been reading on here that you need 6 either way. What's the right answer?

My concern is that I sometimes get a bonus at my job (but it's not guarenteed) and if I go back 6 months that will be in it and calculated into the plan. I can't have it calculated because I can't rely on it.

This whole process is so scary!!!

You provide what you are asked for. We were asked for one full year prior to our filing in spring 2002 (old law). Some are new law and have also had to provide one year, some only six. It depends. Provide what you are asked for by your attorney/trustee.