If you’ve been doing your research, you know that in order to qualify for Chapter 7 bankruptcy, your household income must be below the median income for your household size. Under Section 101(10A)(B) of the Bankruptcy Code, income
includes any amount paid by any entity other than the debtor (or in a joint case the debtor and the debtor’s spouse), on a regular basis for the household expenses of the debtor or the debtor’s dependents (and in a joint case the debtor’s spouse if not otherwise a dependent), but excludes benefits received under the Social Security Act, payments to victims of war crimes or crimes against humanity on account of their status as victims of such crimes, and payments to victims of international terrorism (as defined in section 2331 of title 18) or domestic terrorism (as defined in section 2331 of title 18) on account of their status as victims of such terrorism.
What this means is that you need to disclose to your bankruptcy attorney income from any and all sources. Once she gets all of the information, she can determine what income should or should not be included. She will need information for at least the last six months, so make sure you can find all of it.
It is still unsettled law in Colorado as to whether unemployment benefits need to be included as income for means test purposes. Your attorney can help you determine if it should be included.
