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Means Test and timing of bonus
The means test is based on the 6 complete calendar months immediately prior
to the petition date. So if the petition were to be filed in March 2011
then the relevant Means Test (MT) period is 9/1/2010 to 2/28/2011.
The prospective chapter 13 debtor is getting a large bonus in the first
paycheck in March. This paycheck covers the second half of February
(2/15-28/2011). So the bonus was "earned" before 3/1/2011 (during the MT
period) but paid after 2/28/2011 (after the MT period).
1. It is my understanding that the money received after the MT period does
not count in the MT, regardless of when it. Is this correct?
2. I have another case where the prospective chapter 7 debtor will be
receiving a large bonus in April 2011. Is there any reason (based on the
Means Test) to file in March 2011?
3. Is there a difference between how this issue is analyzed in chapter 7
versus chapter 13?
Alik Segal
Alik.Segal@gmail.com
310-362-6157
Cal. CD, Los Angeles
The means test is based on the 6 complete calendar months immediately prior to the petition date. So if the petition were to be filed in March 2011 then the relevant Means Test (MT) period is 9/1/2010 to 2/28/2011.
The prospective chapter 13 debtor is getting a large bonus in the first paycheck in March. This paycheck covers the second half of February (2/15-28/2011). So the bonus was "earned" before 3/1/2011 (during the MT period) but paid after 2/28/2011 (after the MT period).
1. It is my understanding that the money received after the MT period does not count in the MT, regardless of when it. Is this correct?2. I have another case where the prospective chapter 7 debtor will be receiving a large bonus in April 2011. Is there any reason (based on the Means Test) to file in March 2011?
3. Is there a difference between how this issue is analyzed in chapter 7 versus chapter 13?-- Alik SegalAlik.Segal@gmail.com310-362-6157
Cal. CD, Los Angeles
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