The New York Statement of Current Monthly Income and Disposable Income Calculation for Use in Chapter 13 — Post 2005 is a crucial document required in the bankruptcy process. It assists in assessing an individual's financial situation to determine their eligibility and ability to repay their debts under Chapter 13 bankruptcy. One type of New York Statement of Current Monthly Income and Disposable Income Calculation is the Form B122C-1. This form calculates the debtor's current monthly income by considering their average monthly income from all sources, including wages, salaries, tips, bonuses, interest, dividends, and any other regular income. It also takes into account any contributions to the household income made by a non-debtor spouse or other family members. To calculate the disposable income, another type of New York Statement of Current Monthly Income and Disposable Income Calculation called Form B122C-2 is utilized. This form determines the amount of income that remains after deducting reasonable monthly expenses such as essential living expenses, taxes, insurance premiums, secured debts, and other necessary obligations. This remaining disposable income is critical as it determines the debtor's ability to make a monthly payment towards their debts during the Chapter 13 repayment plan. The inclusion of relevant keywords helps ensure the content is optimized for search engines. Keywords for this topic could include "New York bankruptcy process," "Chapter 13 bankruptcy," "Statement of Current Monthly Income," "Disposable Income Calculation," "Form B122C-1," "Form B122C-2," "eligibility assessment," "repayment plan," "monthly installment," "financial situation analysis," "income evaluation."
New York Statement of Current Monthly Income and Disposable Income Calculation for Use in Chapter 13 - Post 2005
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How to fill out Statement Of Current Monthly Income And Disposable Income Calculation For Use In Chapter 13 - Post 2005?
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The disposable income calculation starts with your gross income. You must also be a wage earner in order to file a Chapter 13. Then, certain expenses are deducted based on an IRS deduction. The deduction is based upon a national average, taking into consideration the metropolitan area you live.
In the test, you compare your income with the median income of a similar size household in your state. If your income is lower, you pass the test.
Calculation of Current Monthly Income: To begin the means test, debtors calculate their current monthly income, which equates to twice the gross income earned in the six months leading up to the bankruptcy filing.
For a Chapter 13, the ?Chapter 13 Statement of Your Current Monthly Income and Calculation of Commitment Period? (Form 122C-1) tells the court your average monthly income. Your income is compared to the median income for your state, which will assist in calculating your disposable income.
Income is calculated by looking at the debtor's income for the six-months prior to filing. A debtor who previously had a higher income but has been laid off in the last year, for example, would be able to rely on their most recent income to satisfy the Means Test.
You can earn a high income and still pass the means test if you have substantial expenses like a hefty mortgage, multiple car payments, taxes, childcare, health care, or care of an elderly or disabled person. However, if your disposable income is more than a certain sum, you will not be able to file.
The means test is calculated by comparing the debtor's average income for the past six months (current monthly income), annualized, to the median income for households of the same size in the debtor's state of residence.
The biggest difference between Chapter 7 and Chapter 13 is that Chapter 7 focuses on discharging (getting rid of) unsecured debt such as credit cards, personal loans and medical bills while Chapter 13 allows you to catch up on secured debts like your home or your car while also discharging unsecured debt.