Legal Question in Bankruptcy in Pennsylvania

income

Is it based on your last six months or your current income? Currently making less now then six months ago.


Asked on 5/18/07, 6:42 pm

2 Answers from Attorneys

John Gibson John W. Gibson, Esquire

Re: income

Your past year's wages are divided into 4 periods of 13 weeks each. They are then averaged over that period per week and the weekly wage is further averaged from the three highest periods.

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Answered on 5/19/07, 11:06 am
John Gibson John W. Gibson, Esquire

Re: income

Sorry I didn't look at the heading which was bankruptcy. I thought this was a workers' compensation question. If this is referring to eligibility to file a Chapter 7 Bankruptcy that is based upon your annual earnings. I think there is a good argument that it should be determined from your present earnings since you disclose your monthly earnings in the Petition. If your earning were dramatically higher in previous years, however, the U.S. Trustee may object even if the presumption of abuse does not arise.

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Answered on 5/19/07, 11:14 am


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