average monthly income

[bill123]

my work hours have been reduced from 40 hrs a week to 15 because of weather conditions.I would like to know if i can i include these reduced months into the previous 6 months wages earned? I will be filing chapter 7 in april.

[bkfiler]

yes they are included. you would use the 6 calendar month sliding window when you file your petition with the court. so if you file on april 20 say, then you would use oct 1 to march 31 income.

(corrected for new bk laws)

[bkinfoseeker]

Gotcha! I think your wrong. The income is caluculated from the last day of the previous month before you file. File on April 15 and you need to report income from October 1 - March 31.

But here is a big question. Is schedule "J" the 6 month income average like the means test or is it "current" income like the old law.

[bkfiler]

well its a good guess.

go find out for sure and let us know.

[SinkingFast]

Gotcha! I think your wrong. The income is caluculated from the last day of the previous month before you file. File on April 15 and you need to report income from October 1 - March 31.

But here is a big question. Is schedule "J" the 6 month income average like the means test or is it "current" income like the old law.

Schedule I is income. Sched J is expenses.

While you use the avg for the Means Test, I think Sched I is based on current monthly income, at the time of filing. At least that's the way one attny fig'd our disposable income. He took Hubby's current net and deducted expenses from there.

Maybe others will know for sure.

[FoolAndHisMoney]

Schedule I is most likely your actual income as schedule J is your actual expenses. I've seen on PACER means test income & expenses are much different then actual for most.

[bkinfoseeker]

Schedule I is income. Sched J is expenses.

While you use the avg for the Means Test, I think Sched I is based on current monthly income, at the time of filing. At least that's the way one attny fig'd our disposable income. He took Hubby's current net and deducted expenses from there.

Maybe others will know for sure.

Good to hear! Is this for sure?
I guess along that lines what about the car payment on schedule "J"? Is it current payment or do you do the new calculation of loan balance/60? Either way I guess you would risk the trustee disputing the amount of the car payment if you used the inflated current payment instead of the average over 60 months.

bkfiler,
Check out Part II of the means test where it says: "All figures must reflect the average monthly income for the six calendar months prior to filing the bankruptcy case, ending on the last day of the month before the filing.

http://www.uscourts.gov/rules/Revised_Rules_and_Forms/BK_Form_B22A101105.pdf

You are amazing bkfiler (a modern day legend) and I mean no disrespect I just got excited to acutally point out a mistake.

[SinkingFast]

Good to hear! Is this for sure?
I guess along that lines what about the car payment on schedule "J"? Is it current payment or do you do the new calculation of loan balance/60? Either way I guess you would risk the trustee disputing the amount of the car payment if you used the inflated current payment instead of the average over 60 months.

bkfiler,
Check out Part II of the means test where it says: "All figures must reflect the average monthly income for the six calendar months prior to filing the bankruptcy case, ending on the last day of the month before the filing.

http://www.uscourts.gov/rules/Revised_Rules_and_Forms/BK_Form_B22A101105.pdf

You are amazing bkfiler (a modern day legend) and I mean no disrespect I just got excited to acutally point out a mistake.

On the car payment, it's the loan balance over 60 months. Interest must fig in there too. As our current car payment is about $255/mo and the amount that's been entered for expenses is around $240/mo. We are in the first year of a 5 year note.

Good to learn about the wording for Average Income for the Means Test. If we pick an attny and start the process sometime this week, we'll be into March before we actually file. Hubby got a pay increase effective Dec 1, 05. Figuring it your way gives us 3 months old salary and 3 months new salary and keeps us below the Median for the Means Test. Hubby's current salary is only slightly above the new Median so it might be tight if it gets fig'd another way.

[bkfiler]

Good to hear! Is this for sure?
I guess along that lines what about the car payment on schedule "J"? Is it current payment or do you do the new calculation of loan balance/60? Either way I guess you would risk the trustee disputing the amount of the car payment if you used the inflated current payment instead of the average over 60 months.

bkfiler,
Check out Part II of the means test where it says: "All figures must reflect the average monthly income for the six calendar months prior to filing the bankruptcy case, ending on the last day of the month before the filing.

http://www.uscourts.gov/rules/Revised_Rules_and_Forms/BK_Form_B22A101105.pdf

You are amazing bkfiler (a modern day legend) and I mean no disrespect I just got excited to acutally point out a mistake.

dont make me go edit my post and correct it lol

well now we know! thats what this place is all about. financial wizards all of us