Inheritance - CMI?
Posted: Thu Jun 03, 2010 9:39 am
charset="UTF-8"
Just my two cents here:
I read 101(10A) conjunctively. That is, current monthly incomeof subparagraphs A and B. Thus, the one-time inheritance is part of the
income under A, even though it may not qualify as income under B.
- John D. Faucher
On 6/3/10 9:27 AM, "Hale Andrew Antico" wrote:
>
>
>
>
>
> Revisiting a question I had back in 2007 (below): did we ever get clarity as
> to whether a one-time inheritance should be income and thus required by the
> OUST as income for B22, Line 9?
>
> Pat's yellow part says "yes," but Raj's response leads me to think he had
> success not counting it. Anyone have experience here in the past 3 years?
>
> Hale
>
>>
>>
>>
Of
>> Patrick Green
>> Sent: Friday, October 12, 2007 3:05 PM
>> To: cdcbaa@yahoogroups.com
>> Subject: RE: [cdcbaa] Inheritance - CMI?
>>
>>
>>
>>
>>
>> Gentlemen and Gentleladies (to quote from one of my favorite dead
>> congressman);
>>
>>
>>
>> We interrupt this discussion to bring you a special bulletin from 11 USC
>> 101(10A)(A):
>>
>>
>>
>> (10A) The term "current monthly income"--
>>
>> (A) means the average monthly income from all sources that the debtor
>> receives (or in a joint case the debtor and the debtor's spouse receive)
>> without regard to whether such income is taxable income, derived during the
>> 6-month period ending on--
>>
>> (i) the last day of the calendar month immediately preceding the date of the
>> commencement of the case if the debtor files the schedule of current income
>> required by section 521(a)(1)(B)(ii)
>> > 546&DocName11USCAS521&FindTypeL&ReferencePositionTypeT&ReferencePositionS
>> P%3B7af40000b0da6&AP&fn_top&utid%7b77228FFA-546E-4C37-BE77-5E3F485DF3C8%7d
>> &rsWLW7.09&mtFederal&vr2.0&svSplit> ; or
>>
>> (ii) the date on which current income is determined by the court for
>> purposes of this title if the debtor does not file the schedule of current
>> income required by section 521(a)(1)(B)(ii)
>> > 546&DocName11USCAS521&FindTypeL&ReferencePositionTypeT&ReferencePositionS
>> P%3B7af40000b0da6&AP&fn_top&utid%7b77228FFA-546E-4C37-BE77-5E3F485DF3C8%7d
>> &rsWLW7.09&mtFederal&vr2.0&svSplit> ; and
>>
>> (B) includes any amount paid by any entity other than the debtor (or in a
>> joint case the debtor and the debtor's spouse), on a regular basis for the
>> household expenses of the debtor or the debtor's dependents (and in a joint
>> case the debtor's spouse if not otherwise a dependent), but excludes
>> benefits received under the Social Security Act, payments to victims of war
>> crimes or crimes against humanity on account of their status as victims of
>> such crimes, and payments to victims of international terrorism (as defined
>> in section 2331 of title 18
>> > 546&DocName18USCAS2331&FindTypeL&AP&fn_top&utid%7b77228FFA-546E-4C37-BE7
>> 7-5E3F485DF3C8%7d&rsWLW7.09&mtFederal&vr2.0&svSplit> ) or domestic
>> terrorism (as defined in section 2331 of title 18
>> > 546&DocName18USCAS2331&FindTypeL&AP&fn_top&utid%7b77228FFA-546E-4C37-BE7
>> 7-5E3F485DF3C8%7d&rsWLW7.09&mtFederal&vr2.0&svSplit> ) on account of
>> their status as victims of such terrorism.
>>
>>
>>
>> I have not looked at any cases, but starting with the plain language, I
>> would say that the yellow highlights indicate that neither gross receipts
>> nor taxable income are the proper basis for determining means test income,
>> but the green highlighted part with my emphasis is a solid basis to say that
>> an inheritance is not counted in the means test.
>>
>>
>>
>> Pat
>>
>>
>>
>>
>>
>> Patrick T. Green
>>
>> 1010 E. Union Street
>>
>> Suite 206
>>
>> Pasadena, CA 91106
>>
>> Tel: 626-449-8433
>>
>> Fax: 626-449-0565
>>
>> pat@fitzgreenlaw.com
>>
>>
>>
>>
>>
>>
Of
>> David A. Tilem
>> Sent: Friday, October 12, 2007 2:12 PM
>> To: cdcbaa@yahoogroups.com
>> Subject: RE: [cdcbaa] Inheritance - CMI?
>>
>>
>>
>>
>>
>>
>>
>>
>> no, it is based on 6 months of gross receipts, not 6 months of income.
>>
>>
>>
>>
>>
>>
>>
>> David A. Tilem
>>
>>
>>
>> Certified Bankruptcy Specialist*
>>
>>
>>
>> Law Offices of David A. Tilem (a debt relief agency)
>>
>>
>>
>> 206 N. Jackson Street, #201, Glendale, CA 91206
>>
>>
>>
>> Tel: 818-507-6000 Fax: 818-507-6800
>>
>>
>>
>>
>>
>>
>>
>> * Bankruptcy specialist cert. by State Bar of CA Bd of Legal
>> Specialization.
>>
>>
>>
>> Business bankruptcy specialist cert. by Amer. Bd. of Certification
>>
>>
>>
>>
>>
>>
Of
>> Raj Wadhwani
>> Sent: Friday, October 12, 2007 1:38 PM
>> To: cdcbaa@yahoogroups.com; David A. Tilem
>> Subject: RE: [cdcbaa] Inheritance - CMI?
>>
>>
>>
>>
>> If it is not income, Im not sure how or why it would need to be included on
>> the means test. After all, the calculation is based on 6 months worth of
>> income.
>>
>>
>>
>> Raj T. Wadhwani
>>
>> Wadhwani Law Firm
>>
>> 15233 Ventura Blvd., Suite 1120
>>
>> Sherman Oaks, CA 91403
>>
>> Phone: (818) 784-0500
>>
>> Fax: (818) 784-0508
>>
>> raj@wadhwanilaw.com
>>
>>
>>
>>
>>
>>
>>
Of
>> David A. Tilem
>> Sent: Friday, October 12, 2007 1:24 PM
>> To: cdcbaa@yahoogroups.com
>> Subject: RE: [cdcbaa] Inheritance - CMI?
>>
>>
>>
>>
>>
>>
>> That does not mean that it should/should not be included on the means
>> test......
>>
>>
>>
>> David A. Tilem
>>
>>
>>
>> Certified Bankruptcy Specialist*
>>
>>
>>
>> Law Offices of David A. Tilem (a debt relief agency)
>>
>>
>>
>> 206 N. Jackson Street, #201, Glendale, CA 91206
>>
>>
>>
>> Tel: 818-507-6000 Fax: 818-507-6800
>>
>>
>>
>> * Bankruptcy specialist cert. by State Bar of CA Bd of Legal
>> Specialization.
>>
>>
>>
>> Business bankruptcy specialist cert. by Amer. Bd. of Certification
>>
>> -----Original Message-----
Of
>> Raj Wadhwani
>> Sent: Friday, October 12, 2007 12:19 PM
>> To: cdcbaa@yahoogroups.com; bk.lawyer@gmail.com
>> Subject: RE: [cdcbaa] Inheritance - CMI?
>>
>>
>>
>>
>> An inheritance is not income. If any portion of the inheritance is or was
>> taxable, it would not be a taxable event for the beneficiary, but the estate
>> of the decedent instead.
>>
>>
>>
>> Raj T. Wadhwani
>>
>> Wadhwani Law Firm
>>
>> 15233 Ventura Blvd., Suite 1120
>>
>> Sherman Oaks, CA 91403
>>
>> Phone: (818) 784-0500
>>
>> Fax: (818) 784-0508
>>
>> raj@wadhwanilaw.com
>>
>>
>>
>>
>>
>>
>>
Of
>> Hale Andrew Antico, Esq.
>> Sent: Friday, October 12, 2007 12:14 PM
>> To: cdcbaa@yahoogroups.com
>> Subject: [cdcbaa] Inheritance - CMI?
>>
>>
>>
>> Issue: Should a one-time inheritance count on the B22 Means Test in the
>> Current Monthly Income calculation?
>>
>>
>>
>> Yes: It's income, and would be reported as such to IRS and on Statement of
>> Financial Affairs.
>>
>>
>>
>> No: It's a one-time event, and would be more akin to capital gains and
>> would be unjust to penalize and skew the debtor's income upwards if they
>> won't be able to afford it.
>>
>>
>>
>> Sure, debtor could wait 6 months, but does anyone have any insight as to
>> whether they must?
>>
>>
>>
>>
>>
>>
>>>>> - John D. Faucher
>>
>>
>>
>>
charset="UTF-8"
Re: [cdcbaa] Inheritance - CMI?
Just my two cents here:
I read 101(10A) conjunctively. That is, “current monthly income” is the sum of subparagraphs A and B. Thus, the one-time inheritance is part of the income under A, even though it may not qualify as income under B.
- John D. Faucher
On 6/3/10 9:27 AM, "Hale Andrew Antico" <bk.lawyer@gmail.com> wrote:
Revisiting a question I had back in 2007 (below): did we ever get clarity as to whether a one-time inheritance should be income and thus required by the OUST as income for B22, Line 9?
Pat's yellow part says "yes," but Raj's response leads me to think he had success not counting it. Anyone have experience here in the past 3 years?
Hale
From: cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] On Behalf Of Patrick Green
Sent: Friday, October 12, 2007 3:05 PM
To: cdcbaa@yahoogroups.com
Subject: RE: [cdcbaa] Inheritance - CMI?
Gentlemen and Gentleladies (to quote from one of my favorite dead congressman);
We interrupt this discussion to bring you a special bulletin from 11 USC § 101(10A)(A):
(10A) The term "current monthly income"--
(A) means the average monthly income from all sources that the debtor receives (or in a joint case the debtor and the debtor's spouse receive) without regard to whether such income is taxable income, derived during the 6-month period ending on--
(i) the last day of the calendar month immediately preceding the date of the commencement of the case if the debtor files the schedule of current income required by section 521(a)(1)(B)(ii) <
The post was migrated from Yahoo.