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Category: Bankruptcy Law
Satisfied Customers: 17252
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I am considering chapter 7 bankruptcy. They use the median

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I am considering chapter 7 bankruptcy. They use the median income for the state you live in(mine is Georgia). How do they arrive at this amount? My wife has a normal job, but I am a real estate agent and I have to pay my own expenses, advertising, mileage etc. So my after expenses income is much less than my total commission Would they use the adjusted gross income from last years taxes? There are 3 of us in the family.



Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on. In terms of determining the household income, your expenses would be considered and your net income as shown through your tax returns would be looked at. Currently the GA income requirements for a 3 family household are the following: Monthly income of 5,092 Or yearly income of 61,104




For debtors who are self employed/sole proprietor, as a general rule, the bankruptcy trustee is interested in the net income of the business, which consists of gross income of the debtor's business minus necessary business expenses. This usually requires completion of a Profit and Loss Statement showing gross income and gross expenses for the six (6) months prior to case filing, with enough specificity to allow the Trustee to fully analyze the business.

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Customer: replied 4 years ago.

As far as the net income, do they look at adjusted gross income off the botXXXXX XXXXXne of the tax return. Is it a judgement call? If so by who?

The trustee will look at the actual income after expenses, they will look at the profit and loss statements of the tax returns, and when you file the bankruptcy when you list your income, you include your expenses that come out of the gross. Adjusted gross income is gross income less deductions from a business or rental activity. So the AGI would be reviewed.