Does unemployement income count as income when filing chapter 7 bankrupcy? 8 Answers as of December 21, 2010

Does unemployment income count as income when filing chapter 7 bankruptcy. The unemployment income my husband receives is putting us over the limit on the 6 month income criteria. Can we indicate UI income as a Social Security benefit instead of income in California?

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Ursula G. Barrios Law
Ursula G. Barrios Law | Guillermo Machado
EDD or unemployment income is income for bankruptcy in California. Not social security income.
Answer Applies to: California
Replied: 12/21/2010
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Yes, unemployment counts as income when filing Chapter 7 bankruptcy.
Answer Applies to: California
Replied: 12/21/2010
Greifendorff Law Offices, PC
Greifendorff Law Offices, PC | Christine Wilton
Yes, it counts as income in California.
Answer Applies to: California
Replied: 12/21/2010
Carballo Law Offices
Carballo Law Offices | Tony E. Carballo
Unemployment income does count. The US trustee has determined that UI income is not a Social Security benefit that can be excluded in the means test as regular social security benefits. That is not to say that the U.S. Trustee is the final word but it might be better to delay filing if necessary until the income gets below the limit if you cannot pass the means test otherwise. I hope you do have a local bankruptcy attorney help you with your case since the means test is not something to be tried at home, particularly if you are that close.
Answer Applies to: California
Replied: 12/20/2010
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
In California it counts as part of the income, at least as far as the Office of the U.S. Trustee is concerned. I do not know if anyone has litigated this issue, but that is the prevailing opinion at this time.
Answer Applies to: California
Replied: 12/20/2010
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    Unemployment income still counts. And no you cannot list it as social security income. Consult an attorney even if you are over the median income you might still be able to file a chapter 7 case.
    Answer Applies to: California
    Replied: 12/20/2010
    Law Offices of Lady Justice
    Law Offices of Lady Justice | Mona Patel
    Yes it does count as income.
    Answer Applies to: California
    Replied: 12/20/2010
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