What Is Income in Bankruptcy?
Income is money received from any source except through gift, devise, or bequeath (inheritance). All sorts of income are taken into consideration when filing for bankruptcy. Money from employment, unemployment, food stamps, child support, family help, rental income, self-employment income, odd jobs, social security, VA benefits, retirement/pension, and selling items on eBay are all considered income. When consulting with an attorney, a you must disclose what sources your household money is coming from.
Some income is not taken into consideration when qualifying for bankruptcy, like Social Security. Social Security is exempt from qualifying for bankruptcy, but your disposable income is taken into consideration. Your disposable income is your monthly necessary expenses subtracted from your gross income. If your disposable income is great enough to pay 25 percent of your unsecured creditors, you may have to file a Chapter 13 bankruptcy. It is very important to disclose all sources of income or any way money is coming into your household so that a bankruptcy attorney can better guide you on which chapter to file.
If you have questions about whether to file Chapter 7 or Chapter 13 bankruptcy–or whether bankruptcy is right for you at all–contact the Law Offices of Jason S. Newcombe today. Our experienced Seattle, WA lawyers would be happy to answer your questions and help you find the solution that is best for you and your family. We offer free consultations.