Expert: Regan Shinski - 1/14/2010

Question
QUESTION: Hello again.  Was wondering if unemployment money counts towards means test?  Also, I am currently living with my parents and am likely going to be laid off and would like to file bankruptcy at that point and am not sure I will qualify for the means test with my parents income included.  If I were to rent an apartment shortly before filing to establish my own household, would that allow only my income to be considered or will the judge see that as fraudulous if he sees my lease signed a month or so before filing?  I also know my father has some retirement money somewhere and is that considered or is only actual income?

ANSWER: All money typically counts towards the means test except social security.  In addition, your income from the past 6 months will be taken into average for this purpose.  So if you were working in that time period, that will also count in the average.  Same thing on the expense side, so renting an apartment may or may not help.

Good luck, I hope it works out.

Regan

---------- FOLLOW-UP ----------

QUESTION: So even if i had an apartment at the time of filing and my income was the only one in my household, they would still include the average income of my parents during the previous 5 or 6 months that I was living with them before getting my own place?

Answer
No, for income I think they will only include your average for six months months if you were on your own and you can show your circumstance has changed, but if you are not getting the apartment household income probably applies.  Sorry for the confusion, you were talking about two separate scenarios.  There are also some state laws that can play in this, so I really think you should consult a local bankruptcy attorney.  Most will give free initial consultations.