In a Chapter 7 Bankruptcy, how does one list income garnishment? 20 Answers as of April 24, 2014

How would I list my income on my chapter 7? I know I would add everything up in the last 6 months and divide by 6 to get the average. Problem is, I have a wage garnishment that JUST started last week. How would I list that? I originally put $400 a month (which is what it should be monthly), but that's not what is HAS been.

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EDWARD P RUSSELL | EDWARD P RUSSELL
You list the garnishment taken from you in the 90 days before filing on line 35 of Schedule B, making sure that it is exempted in Schedule C. That way to can demand that it be returned to you.
Answer Applies to: Minnesota
Replied: 4/24/2014
Stephens Gourley & Bywater | David A. Stephens
You list your gross income so the garnishment does not matter.
Answer Applies to: Nevada
Replied: 4/24/2014
Detroit Lawyers, PLLC
Detroit Lawyers, PLLC | Nick Best
List the garnishment on the Statement of Financial Affairs under 4b. Don't worry about it on the means test since you're using the gross amount for that 6 month average anyway. I don't list it on schedule I because it'll be stopping when you file for bankruptcy and that looks at your current income and takes into account payroll deductions and garnishments that would be ongoing. If the garnishment is over $600 during the 90 days prior to bankruptcy I list it on schedules B & C so that I can recover it.
Answer Applies to: Michigan
Replied: 4/22/2014
Idaho Bankruptcy Law | Paul Ross
I assume you are talking about the means test. That is only gross income for the past six months and does not include any expenses/deductions unless you have to rebut the presumption. A garnishment does not show up on the means test even if you are attempting to rebut the presumption. Do not confuse Sch I & J with Form 22A. Visit with an attorney. A bankruptcy attorney has software that will run all the calculations for the means test, no point in doing it manually.
Answer Applies to: Idaho
Replied: 4/22/2014
Patrick W. Currin, Attorney at Law | Patrick Currin
The garnishment info should go on the Statement of Financial Affairs. You should notice the people garnishing of the BK since they are now stayed. Do not consider the garnishment when completing the Means Test, however.
Answer Applies to: California
Replied: 4/21/2014
    Eranthe Law Firm
    Eranthe Law Firm | Cate Eranthe
    You have to list your gross income on the means test and Schedule I which would be before the garnishment. The garnishment is listed in the appropriate place on the Statement of Financial Affairs. Talk this over with your knowledgeable local bankruptcy attorney. This is not something you should be doing yourself.
    Answer Applies to: California
    Replied: 4/21/2014
    The Law Offices of Deborah Ann Stencel | Deborah A. Stencel
    Your garnishment does not belong on Schedules I and J or Form B22 of your bankruptcy filing as the bankruptcy will end the garnishment. It may need to be disclosed elsewhere on the filing (I.e., the Statement of Financial Affairs).
    Answer Applies to: Wisconsin
    Replied: 4/21/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    The "means test" goes by gross income so garnishments are disregarded.
    Answer Applies to: Oregon
    Replied: 4/21/2014
    HARVEY S. MORRISON, ATTONEY AT LAW
    HARVEY S. MORRISON, ATTONEY AT LAW | HARVEY S. MORRISON
    I must assume that you plan to file the case yourself and are now trying to figure out the "Means Test". There is no line for deduction of wage attachments, which would end upon filing of the bankruptcy. Likewise, Schedule J has no item for garnishments, probably for the same reason. You should disclose the garnishments in the Statement of Financial Affairs - Item 4.
    Answer Applies to: Ohio
    Replied: 4/21/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Do not include the garnishment on B22 - that is a payment to a creditor not properly reported there.
    Answer Applies to: California
    Replied: 4/21/2014
    Tokarska Law Center
    Tokarska Law Center | Kathryn U. Tokarska
    What is the garnishment for? If it's a debt that will be discharged in the bankruptcy, then you don't account for it in your schedules since this debt won't exist. I know this is counterintuitive because B22 form looks backwards in time, but that is how it works. There is no place to specifically put a garnishment on form B22. If however, the garnishment is for non-dischargeable debt like family support or past due income taxes (some taxes are dischargeable and some aren't depending on some facts) then you list the full amount owed on Schedule E and then on B22 line 43 you list a calculated amount. The formula is total amount owed divided by 60. Are you certain you have to fill out the entire B22? The answer depends on whether you qualify for exemption and (and this is the most frequent exemption) whether your CMI is below the median. Make sure you calculate the CMI correctly as I've seen mistakes here by people who started out trying to do this on their own and then gave up and brought to the me forms they completed. If you are above the median then it would be a good idea to retain an attorney to help you pass the Means Test as here again people without experience in this area of the law tend to misunderstand the deductions available to them. Can I just say that filing on your own without assistance of counsel is not just nerve wracking but could be dangerous. Even attorneys who practice other types of law will typically hire a bankruptcy attorney to represent them. As you no doubt already discovered the petition is quite long and detail intensive. Someone who does this on a regular basis can navigate this process without mistakes and problems. Having said that, if you go forward on your own, I sincerely wish you the best of luck and I hope the information here helped.
    Answer Applies to: California
    Replied: 4/21/2014
    Law Office of Marlin Branstetter
    Law Office of Marlin Branstetter | Marlin Branstetter
    The means requires that you list your GROSS income for the last six months, not the net. Also, do not include the garnishment on Schedule I since you will not pay it after you file bankruptcy.
    Answer Applies to: California
    Replied: 4/21/2014
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    You list your net take home pay without regard to the garnishment.
    Answer Applies to: Colorado
    Replied: 4/21/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    You would not list the wage garnishment unless it is for child support, alimony or some other debt that would not be affected by a bankruptcy filing. I can almost guarantee that if you think you are able to file bankruptcy yourself, you will mess up on something that you didn't know to ask about.
    Answer Applies to: Nevada
    Replied: 4/21/2014
    Law Offices of Linda Rose Fessler | Linda Fessler
    You put the garnishment as a debt and you may be able to get the garnished money returned to you, since it is in effect giving preference to one creditor over another.
    Answer Applies to: California
    Replied: 4/21/2014
    Law Office of Andrew Oostdyk
    Law Office of Andrew Oostdyk | Andrew Oostdyk
    Depending on the type of garnishment, bankruptcy may be able to stop the withholding, and you would report your normal income. Bankruptcy can be difficult to navigate if you do not have experience. I recommend speaking with a bankruptcy attorney in your area, they will be able to guide you through the process and ensure that you achieve your desired results.
    Answer Applies to: Texas
    Replied: 4/21/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    You may list your income without the garnishment if it is going to stop as a result of the bankruptcy filing. If it is not going to stop (ie child support) then you would use your income reduced by the garnishment.
    Answer Applies to: Indiana
    Replied: 4/21/2014
    Wellman Law LLC
    Wellman Law LLC | Keith A. Wellman
    The Means Test is the only form that asks for income specifically for the 6 months prior to the month of filing, so I'll presume you're referring to that. It clearly states "Gross wages..." etc. Therefore a deduction such as a garnishment would not be relevant to that line ("Gross" means total before deductions, "Net" means after deductions). There are other areas in the documents where the garnishment would be relevant, such as the Statement of Financial Affairs. I would highly recommend consulting with an attorney if you have not. It sounds like you're trying to file a case that was overdue, but now an emergency because of a garnishment. But there are so many potential pitfalls to filing without counsel. It may even be that a Chapter 13 would be better for you and can have essentially all of the legal fees paid through a plan so you don't have to worry about paying an attorney prior to stopping the garnishment.
    Answer Applies to: Kansas
    Replied: 4/21/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    Actually, while practices may vary from one jurisdiction to the next, here in Colorado we are not permitted to include deductions for wage garnishments in the means test because they will not be continuing in the future. If you are permitted to deduct where you live then the deduction would only be for the actual amount withheld averaged over six months. This is because the garnishment will stop as soon as the case is filed and will not affect your ability to pay your other obligations moving forward. I cannot encourage you strongly enough to hire an experienced lawyer to assist you with your bankruptcy filing.
    Answer Applies to: Colorado
    Replied: 4/21/2014
    Hicks, Massey & Gardner, LLP
    Hicks, Massey & Gardner, LLP | Robert M. Gardner, Jr.
    Since the garnishment should end when you file your case, you do not list it on schedules I and J. Instead, it would go on the Statement of Financial Affairs. Please note that, while a bankruptcy filing should stop the garnishment, you need to give proper notice to the creditor and their representatives, including their registered agent and corporate officer in some situation. Also, if they have a judgment against you that they are using to garnish your wages, there is another step necessary to avoid this lien. Please consider hiring an attorney to make sure this is done correctly
    Answer Applies to: Georgia
    Replied: 4/21/2014
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