Do I have to report my child support as income on my petition?
Do I have to report my child support as income on my petition?
Assuming other reasons don't bar filing, presumptive qualification to file chapter 7 bankruptcy hinges on whether you're below the median income in your state of residence. Though, the median income is based on your household size, so the more kids you have, the higher the threshold is for you to qualify.
With regard to child support, the answer is yes, you do need to report your child support as income. What the Bankruptcy Court and the Trustee are trying to ascertain is whether you have the means to pay back some or all of your debt. Since your child support payment is available for you to pay your bills with, it is counted as income. Income, whether taxable or not, whether above or beneath the figurative table is income. Certain forms of income, such as Social Security Income are regarded differently, however they're still income. Ultimately, if you can pay your debts from any source of income, then you need to try to do so. If you can't pay... well, we're here to help. Don't put up with abusive creditor calls: our country doesn't put up with debtors prisons. When a creditor commandeers your phone line, that's a type of prison. But we can break you out, and there's no need to watch the prison-escape exploits of McQueen, Eastwood or Robbins to learn how.
Tuesday, February 9, 2010