Legal Question in Bankruptcy in California
For chapter 7, would the amount I get on my payroll paychecks count as Median Income or the actual salary before taxes?
3 Answers from Attorneys
The median income is set by Census Bureau data and is the figure you are comparing your income to in the Means Test. So, what you need to do is total up the gross income from all your payroll checks received in the last six full months. That number is then divided by six to get your CMI (current monthly income). You then compare that to the state's median income. If you're below it, you're set. If you're above it, now you go on and figure out other deductions such as taxes, etc. This can (no thanks to Congress) become very confusing very quickly, so you might want to consult an attorney about this. I'm in Calabasas, and you're welcome to give me a ring. (818) 591-9890 or go to www.mannislaw.com
It is the gross income, not what you end up with after taxes and other deductions.
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