Legal Question in Bankruptcy in Illinois

Chapt 7 BK

I work for a school district which requires a TRS(Teacher Retirement Sysytem) My base salary is 43,500 and my base + TRS is 48,200. My pay stub shows I make 48,200 Gross when in reality $188 per pay check gets deducted and placed in my TRS. This is not by choice, but required. What amount is considered gross income for filing chapt 7? My base or base + TRS?


Asked on 6/19/07, 1:42 pm

2 Answers from Attorneys
Terrance Leeders Leeders Law

Re: Chapt 7 BK

For your schedules, you would list the $48,200 then list the deductions for the retirement. The means test allows for certain deductions for mandatory deductions like taxes, mandatory retirement plans, some insurances, union dues etc. Therefore, you should contact an attorney to help work you thru to confirm you are qualified to file for Chapter 7

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Answered on 6/20/07, 11:10 am
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: Chapt 7 BK

Gross income for the purpose of the means test is ALL of you income, no deductions are taken into account to determine your gross. However, if your income is higher than the threshold, then you would be going further into the means test analysis which does ask about mandatory dedutions. TRS sounds like it is akin to say social security, which said income is part of one's gross.

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Answered on 6/19/07, 2:06 pm


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