Regular Income for Chapter 13 Bankruptcy

A Troy, Ohio Bankruptcy Attorney Explains Regular Income for Chapter 13 Bankruptcy

You’ve made the brave decision to file for bankruptcy, but you know you don’t qualify for Chapter 7. And that’s fine because Chapter 13 is going to allow you to repay your debt and still have the ability to get back on the right financial track. In order to qualify for Chapter 13, you must be able to prove you take in a steady and reliable income. Here, we’ll explain exactly what regular income is when qualifying for Chapter 13. 

Chapter 13 Regular Income

In the eyes of the bankruptcy court, regular income is compensation you receive for regular work performed as a salaried employee. This is generally consistent income that’s relatively the same amount per pay period.

If you’re an hourly employee and you have set hours from pay period to pay period, this would also count as regular income. Child support and some government benefits may also count as regular income, but your Troy, Ohio bankruptcy attorney would be able to provide more information pertaining to your own unique situation.

What is Not Considered

If you own your business and your main source of income is from that business, it may be difficult to convince the court that qualifies as regular income. Certified financial statements from a CPA may help establish you make a consistent, regular income through your business.

Also, if you work on a commission only basis, the court is not likely to consider that regular income. Bonuses and overtime salary are not regular income, either. For more information on Chapter 13 bankruptcy, contact us.

Leave a Reply

Your email address will not be published.