Household Income & How it Impacts Your Bankruptcy

by DeLadurantey Law Office, LLC on April 23, 2014

Falling money and house high-res-xxlIf you are considering filing for bankruptcy protection, you must be prepared to talk with us about your finances honestly and candidly. It is important that we accurately determine your “household income.” Calculating your household income allows us to determine whether you are eligible to file a Chapter 7 or Chapter 13 case. For the purposes of a bankruptcy filing, your household income includes more than just your paycheck.

Examples of sources of income for bankruptcy purposes include:

  • Gross wages. If you have a job, you are required to include everything you earn, including your salary, tips, bonuses, overtime, and commissions. We can look at the timing of when you receive your bonus or commission to help you determine how it will affect your eligibility to file a Chapter 7 case.
  • Business income. If you own a business, including farms, rental property or other professions, income you receive from it must be considered after reducing the amount spent on operating expenses.
  • Pension and retirement income. If you are receiving income or payouts your retirement account or pension, the amounts must be included.
  • Interest, dividends, and royalties. Income you receive from investments in stock or oil/mineral rights must be disclosed.
  • Child support payments. If you receive payments from another person on a regular basis for the household expenses of you or your dependents, such as child support or alimony, it should be listed in your filings.
  • Unemployment compensation. Unemployment benefits receive within the 6 months preceding your filing will be disclosed.

The above list is intended to provide just a few examples. There may be other sources of income to consider.

Contact The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office. LLC.   DeLadurantey Law Office focuses on Chapter 7 and 13 bankruptcy, debtor’s rights, debt negotiations, debt relief, mortgage loan modifications, and foreclosure defense.  A “defender of the little guy, DeLadurantey Law Office serves the following location – Milwaukee, South Milwaukee, West Milwaukee, Waukesha City, Waukesha Town, Kenosha, Racine, and all other municipalities in Milwaukee County, Waukesha County, Kenosha County, and Racine County.  We can be contacted by phone: (414) 377-0518 and can be found on the Internet and on Facebook.

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