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How Will Trustee Determine MY Income ?


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From what I understand you have to pass a means test regarding your income to have your bankruptcy application approved.

I'm getting things in order to file a CH7. My occupation is insurance agent so I receive commissions from 6 different insurance companies but also have expenses related to earn that income. Will the trustee just look at the gross commission income or also take into account the expenses?

My tax returns are all filed and up to date. What kind of documentation will I need regarding my income for this year to satisfy the trustee?

Thank You for your replies.

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Your BK attorney should have some insight into how the trustees in your area handle this...but...in March 2004, being "self employed", we were asked for 3 years worth of tax returns...and...an estimate for the first quarter. Since our business went away, the estimate was zero. You might have some problems being on commission.

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The income requirements will take into account the average of the last 6 months of income. You will also be required to provide 2-3 years of income taxes as well as loads of other financial information. Expenses are now limited to the IRS allowances. If your expenses are above what the IRS allows, you can appeal but it will cost you money to do so.

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