Seven Months of Pay Stubs
Required to File Bankruptcy
In Chapter 7 and Chapter 13 cases involving consumer debt, bankruptcy filers are required to submit a two part income analysis. This analysis is called a “means test” and is designed to qualify you for either Chapter 7 or Chapter 13.
The first part of the means test is called the “median income review” and it requires you and your lawyer to calculate your average gross monthly income. In order to calculate your average income your lawyer will need proof of income from the past six months (not including the current month). You will need your current month’s pay stubs for a different purpose so you need to be prepared to produce pay stubs or other proof of gross income for the past seven months.
If you are married or live with someone else who works, you need to include that person’s gross income information as well. Don’t worry - you can later back out of the calculation a non-filing spouse or roommate’s non-household contribution.
Your lawyer can perform the median income calculation but he/she will need pay stubs (also called pay advices) from the most recent seven month period.
Depending on the results of the median income test, you may or may not need to proceed to an expense analysis that is the second part of the means test.
Therefore, if you want to get started early, begin collecting your pay stubs from the past seven months - once you choose a lawyer, he/she will need this information.
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