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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
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Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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California Bankruptcy Law For Chap. 7, will the court consider

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California Bankruptcy Law: For Chap. 7, will the court consider "social security" and/or "unemployment" income when calculating my income for the past 6 months when figuring the "means test". xxx xxx. xxx xxx
Thank you for the post xxx, neither social security is excluded from the means test, as is unemployment.

Edited by Rebecca_Admin on 5/2/2010 at 1:16 AM EST

I respectfully XXXXX XXXXX my colleague's answer.


 


Under 11 USC §101(10A)(B), Social Security income is excluded from the means test. Unemployment income is included to the extent that it was received within the 6 months prior to the filing of the bankruptcy petition.

socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38913
Experience: Attorney and Real Estate Broker -- Retired (mostly)
socrateaser and 2 other Bankruptcy Law Specialists are ready to help you

Note: after some discussion with my colleage, it appears that there is a split of opinion concerning the inclusion of unemployment benefits as income for means test purposes.

 

In re Kucharz, No. 09-81258 (Bankr. C.D. Illinois 2009) and In re Baden, 396 B.R. 617 (Bankr.M.D.Pa. 2008), hold as in my answer to you, above.

 

In re Munger, 370 B.R. 21 (Bankr.D.Mass. 2007) and In re Sorrell, 359 B.R. 167 (Bankr.S.D.Ohio 2007), hold that unemployment benefits are also excludable -- which is an even better outcome for you.

 

That said, there are very few legal opinions on this issue, and no binding precedent. So, unless your bankruptcy court is one of the above courts, then you cannot absolutely know how the court may rule on the issue.

 

You may want to consult with local bankruptcy counsel to see whether there is any "trend" in the courtroom.

 

Good luck.

socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38913
Experience: Attorney and Real Estate Broker -- Retired (mostly)
socrateaser and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 7 years ago.
Thanks very much for all of your effort on my question. I will discuss it further with a local attorney. xxx, xxx
You're welcome and happy holidays.