I got the paperwork from my attorney to review, I'm filing next week. I guess I'm not really understanding this, but what else would be included in your income? Is it just wages, or would stock sales and cashing out a CD be included? Does this factor into the limits you need to fall under to file Ch 7?
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That answer depends somewhat on the circumstances.
The best way to think of income for BK purposes is anything that is remotely regular and/or comes from a 3rd party source.
The sale of stock...NOT INCOME. That is merely converting an asset you already own into another asset "type" (stock to cash).
Stock Dividend...IS INCOME, the dividend comes from a 3rd party source (the company paying the dividend)
Tax Refund...is INCOME. Strictly speaking, it comes from a 3rd party source.
Is there anything in the paperwork that is of concern for you. -
Well obviously I'm not understanding something. In the paperwork my attorney sent there's a section labeled "subtotal of current monthly income." In this figure is included a CD I cashed out and some securities that I sold earlier in the year. They total under $400, but I just didn't think this was considered income so I'm confused. Then further down there is "annualized current monthly income" which is much higher than my gross wages. It must include the CDs and stock also. A few pages later there's a place where it says "projected average monthly chapter 13 plan payment." I'm filing a chapter 7 and I was under the qualified amount by $2000 so now I'm confused. Did the stock sales and CDs put me over the limit for a Chapter 7? I'm really trying to understand this, but something just doesn't add up for me.Originally posted by HHM View PostComment
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