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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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When filing for chapter 7,there is a question about our monthly

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When filing for chapter 7,there is a question about our monthly income. I recieve SSDI,my wife on the other hand worked for a bank in the same location for almost 22 year's.Finally made her way up to manager for the last 5 year's. The headquarter's decided to close her branch this last June and she recieve's her normal pay until June 15th of 2013. How do I present this income in the Chapter 7 filing(paperwork)? I am preparing and filing on my own.

cfortunato :

Hi - my name is XXXXX XXXXX I'm a Bankruptcy attorney here to assist you.

cfortunato :

Your wife's income goes on Schedule I and on form 22A (Statement of Current Monthly Income and Means Test Calculation), even though you will be filing on your own.


 

cfortunato :

At the bottom of Schedule I, you would indicate the fact that your wife's income will be changing within the year after filing.

cfortunato :

Is this what you wanted to know?


 

Customer:

I did forget to mention that she did cash in a 401k that of course was heavily taxed and of course had outragous fee's,do I also have to add that in?Most of this we did spent on medical bill's.

cfortunato :

Was the 401(k) in your wife's name only?


 

Customer:

yes

cfortunato :

Also - you said you would be preparing and filing own. Did that mean your wife will not be filing with you?

Customer:

she will be filing with me

cfortunato :

Thanks.


Was the 401(k) account closed?


 


 


 

Customer:

yes

cfortunato :

The closing of the account goes on line 11 of the Statement of Financial Affairs (SOFA).


Additionally if more than $600 was paid to any one creditor within the 90 days before filing, that information goes on line 3 of the SOFA.

cfortunato :

Taking money out of a 401(k) account or closing that account is not considered to be income for Bankruptcy reporting purposes.

cfortunato :

In other words, that information would not go on Schedule I or form 22A.

Customer:

I guess that's what I was trying to get at im my mind

cfortunato :

Good. Is there anything else I can help you with this evening?

Customer:

so your previous answer was slightly incorrect for our situation?

Customer:

sorry for my last statement.I was wrong!

cfortunato and other Bankruptcy Law Specialists are ready to help you
Customer: replied 4 years ago.

Oh,I forgot.Do I report net or gross on line 11 of the SOFA? Thank You

On line 11, you should enter the entire (gross) amount that was withdrawn, and make a separate entry (on the same line) to indicate the tax(es) and fees that had to be paid from the gross amount that was withdrawn.
Customer: replied 4 years ago.

Thank you very much.

You're welcome!