Part Two: Kinds Of Income Reported In Bankruptcy; What Is True Income?
By Susanne Robicsek, North Carolina Bankruptcy Attorney on May 11, 2007 in Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy Information
“TRUE INCOME”
Chapter 7 and Chapter 13 bankruptcy debtors are required to report true gross income from all sources for the year a bankruptcy is filed in, and the two years preceding the filing. That would include (but is not limited to) all employment income, investment income, rental income, etc. They are also required to disclose in bankruptcy petitions, all sales, dispositions, or transfers of property in any manner.
True income is what was earned historically. It is money that someone really got. It includes taxable income, although it may also include non-taxable income, sale of assets, gifts, inheritances, social security, disability, unemployment, alimony, support, settlements or other sources of funds.
True income can reveal a lot about a person. By looking at the last two+ years of income, one often sees fluctuations in income, job loss, divorce or other factors which may have contributed to a person’s financial condition and can help tell the story of how a person got to the point of bankruptcy.
See also: Part One: Kinds Of Income Reported In Bankruptcy; Introduction
See also: Part Three: Kinds Of Income Reported In Bankruptcy; What Is Projected Income?
See also: Part Four: Kinds Of Income Reported In Bankruptcy; What Is CMI, Also Known As Means Test Income?
If you liked that post, then try these...
Obama and McCain's Votes on Bankruptcy Amendments by Brett Weiss, Maryland Bankruptcy Attorney
Predatory Lending Reform? by Kurt O'Keefe, Attorney at Law
Mortgage Modification Bill: Mortgage Bankers Don't Get It by Wendell Sherk, Missouri Attorney
What is a secured debt? Part 2 – purchase money security interest by Chip Parker, Jacksonville Bankruptcy Attorney
The One Thing I Really Want Bankruptcy Clients To Do Is … by Peter Orville, Attorney at Law
1 Trackback(s)
You must be logged in to post a comment.