How is a median income figured for chapter 7 is it..

[deesown]

throughout six months or it all of your yearly income you claim on your taxes?

[jennordhavn]

throughout six months or it all of your yearly income you claim on your taxes?

I believe they use the last six months of income and then double it to see if it is below/above the median for your state.

[lrprn]

throughout six months or it all of your yearly income you claim on your taxes?

Looking back the last six full calendar months before you intend to file, first add up all the income you earned from every source - any cash advances, bonuses, second jobs, private consulting gigs, cash gifts, etc.

Next take that "last six months" total x 2.

This is the "income" you compare against your state's median income for your family size - http://www.usdoj.gov/ust/eo/bapcpa/2...come_table.htm

After Oct 14, 2007, this table is changing, so be sure to check it again after that unless you intend to file in the next few days.

[RickInMich]

lrprn,

Cash advances??????? You mean we have to include cash advances in our income? How can that possibly be fair? Obviously, we won't be able to get cash advances after BK. Wow, that will definitely change our timeline on when to file.

Rick

[PaKettle]

lrprn,

Cash advances??????? You mean we have to include cash advances in our income? How can that possibly be fair? Obviously, we won't be able to get cash advances after BK. Wow, that will definitely change our timeline on when to file.

Rick

Yeah, that seems weird to me, too. Why would a cash advance be considered as income when the NEXT 6 months you will not be getting that same "income"? Also, that income does not go on your taxes, does it? Maybe my tax guy put it in as income, but I don't recall him doing so...

Also, lrprn, ya think there is ANY chance the median income would go down and not up, for California?? If so that could screw our case . I would think it would be most likely to go UP, not down, with all the inflation we are experiencing as a country right now. Oh well, it's too late to do anything about it, now. Hopefully if it does down, it won't go down too much! Has it gone down, ever, in recent history?

[325Falcon]

Must be a typo!!

A cash advance from a CC is a debt not income. I hope!!!!!!!!

[lrprn]

Sorry for the confusion, folks. I was thinking about cash advances from your employer against future pay or cashing out 401K funds during the six months prior to filing - these do count as income. I don't think that cash advances from credit cards count as income in the six-month lookback. As always, it's best to check with your lawyer to be 100% certain about anything you read here.

[PaKettle]

Sorry for the confusion, folks. I was thinking about cash advances from your employer against future pay or cashing out 401K funds during the six months prior to filing - these do count as income. I don't think that cash advances from credit cards count as income in the six-month lookback. As always, it's best to check with your lawyer to be 100% certain about anything you read here.

Whew! You had me worried! Thank goodness!

[SinkingFast]

Depending on how your Court does it, you may have to actually have nearly 7 months of pay stubs.

In our Court if you were gonna file by the end of this month,...........

You'd need this month's pay stubs. Plus pay stubs from Sept, Aug, July, June, May, and April. To the first of April. Even tho the Code says it's a 6 month look back, it's really more like 7 months the way our Court does it.

Different Courts handle that issue differently. Attnys in your area will know what your Court expects.