My basement flooded, I don't have sump pump insurance to cover t, ad I've received some funds from FEMA for my losses. Would this be considered income? The money takes the place of an insurance reimbursement for such a loss (if I had the insurance) so I don't know if I need to use it on the means test as income. Any thoughts?
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Eventually this will all be over.....
Filed Ch 7 11/26/08
341 Meeting 1/6/09 went well!
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Honestly I hope someone more knowledgeable chimes in here but usually the court looks at all monies received for the last 6 months in determining qualification for chap 7 and the means test. They do not care how you got the money, who gave it to you or where it came from it is all income in their eyes.Filed!!04/23/2008[X] 341 5/27/2008[X]
Converted to asset case 5/26/2008 [X]
DISCHARGE 08/12/2008[X]
Converted to NO Asset case 12/15/2008[X]
Closed 12/16/2008 [X]:yahoo::yahoo::yahoo: -
No direct experience with your issue either, but we were required to include all money received from all sources on the means test. Unless you get a definitive answer from an attorney, I'd plan on it being counted as income the way an insurance payment or accident settlement would. We were forced to include a relocation bonus as income, and the argument here could be "Well, you had all of that money in your hands and could have chosen to put it toward your debt rather than replacing lost property". As unfair as it seems, I'd be surprised if you didn't have to count it as income.Comment
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Have had this question raised by FL clients.
What we are learning is that the disaster mitigation payment is not income.
Fema money is a grant and therefore not considered taxable income.
Now, regarding BK, I could not say.Comment
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That is true... thinking back to when we received FEMA money in 2000 we had no income tax liability for it. Maybe it can be excluded?Comment
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