Does unemployment compensation of a dependent count as income? 6 Answers as of October 07, 2010

I am filing chapter 7 bankruptcy. I have a 19 year old daughter who lives with me and who is a dependent. She is currently receiving unemployment. Does this count as income for me? She is the recipient of this money, not me.

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The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
No, it does not count as income to her, but anything she contributes to the household expenses must be included both on the means test and Schedule "I".
Answer Applies to: California
Replied: 10/7/2010
Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
No.
Answer Applies to: California
Replied: 10/6/2010
The Orantes Law Firm
The Orantes Law Firm | Giovanni Orantes
If she is 19 and not a full-time student, she may not be your dependent for purposes of filing bankruptcy. As to whether you qualify under the means test, you would need to count at least any income she contributes to the household so that you can add her. Again, we need more details to know what is even relevant and what is not as to whether you qualify for Chapter 7. In other words, if you earnings are not so high that you do not need her to qualify for Chapter 7, then what she gets is less important, but whatever she does, in fact, contribute to the household should be disclosed and used to determine whether you qualify.
Answer Applies to: California
Replied: 10/6/2010
Builders Law Group
Builders Law Group | Nick Campbell
As a general rule, no. Her "income" would likely be irrelevant unless there was some evidence of fraud that you were paying for her "expenses" to increase your debt or lower your "leftover" income (which would be particularly important in a Chapter 13). On the other hand, if she is paying money to you for rent or expenses, then you would technically need to report what you are receiving from her.
Answer Applies to: California
Replied: 10/6/2010
Diefer Law Group, P.C.
Diefer Law Group, P.C. | Abel Fernandez
No, this will not count as income.
Answer Applies to: California
Replied: 8/28/2010
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