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Bankruptcy Lanigan & Lanigan, P.L.
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Chapter 7 vs. Chapter 13 Bankruptcy Decided by Salary

Determining Monthly Income

An important statistic in a bankruptcy filing is an individual’s current monthly income.  It is not overtly obvious what the proper determination of an individual’s monthly income is for a bankruptcy filing. One of the most important reasons for properly determining current monthly income is to see if an individual is able to pay back debts under Chapter 13 bankruptcy instead of Chapter 7 bankruptcy. Orlando bankruptcy attorneys Roddy Lanigan and Eric Lanigan can assist in this area.

Bankruptcy courts have determined that an individual’s current monthly income is the average monthly income over the six month period preceding a bankruptcy filing. This includes all types of income regardless if they are taxable or not. It is gross earnings that are to be used and not the net income an individual takes home after taxes and other deductions.

Certain sources of income may be forgotten to include in the calculation of monthly income are interests, dividends, royalties, pensions, retirement income, and regular contributions someone else makes to household expenses including spousal support and child support. Even if an individual is not working due to unemployment or injury that person is required to include unemployment insurance, worker’s compensation insurance and state disability insurance in the monthly income calculation.

The bankruptcy process can be made a lot easier with the proper guidance and assistance. Orlando attorneys Roddy Lanigan and Eric Lanigan can provide the help you need with the bankruptcy or foreclosure process. Call Eric Lanigan and Roddy Lanigan at their Winter Park office with your legal needs. They’ll provide answers and experienced representation with a personal touch.

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