Question 1

The debtor stopped working a part-time job in December. In January, his petition is ready to be filed. The income from the part-time job is listed in _________.&#10;A) Schedule I.&#10;B) Schedule J.&#10;C) Means Test.&#10;D) None of the above.

Accepted Answer

The Means Test is used to determine a debtor's eligibility for filing Chapter 7 bankruptcy and involves analyzing the debtor's income and expenses over the past six months, including income from jobs that have recently ended.

Question 2

The client's wife is not filing for bankruptcy, so the non-filing spouse's income is included in Schedule I or the Means Test?&#10;A) Since the spouse isn't filing, her income is excluded.&#10;B) The spouse's income is included in both Schedule I and the Means Test.&#10;C) The spouse's income is only included in Schedule I.&#10;D) The spouse's income is only included in the Means Test.

Accepted Answer

The non-filing spouse's income is included in both Schedule I and the Means Test to accurately reflect the household income and the debtor's ability to pay debts. Schedule I captures current income while the Means Test assesses eligibility for Chapter 7 or payment capabilities in Chapter 13.

Question 3

The client's boyfriend moved in with her on March 1^st. The debtor is filing for bankruptcy the week of Thanksgiving. The boyfriend's contributions are listed in ________. A) Schedule I. B) Schedule J. C) Means Test. D) Form 122A-2.

Accepted Answer

Schedule I is used to list the debtor's income, including contributions to household expenses from non-filing members, such as a boyfriend.

Question 4

Child support received is neither taxable income nor a deduction, so it's excluded from Schedule I since it's not taxable income.

Accepted Answer

The answer of Child support received is neither taxable income...

Question 5

The client is receiving unemployment compensation which is excluded from Schedule I.

Accepted Answer

Unemployment compensation is typically included in Schedule I as it is considered income for the purposes of calculating a debtor's financial situation in bankruptcy proceedings.

Question 6

Since the debtor lost his job, he's filing for bankruptcy. His wife recently retired and receives Social Security Income which is excluded from Schedule I.

Accepted Answer

Social Security Income is not excluded from Schedule I; it should be reported as income on the bankruptcy forms.

Question 7

Even though government assistance is a benefit and not income, it's still listed in Schedule I.

Accepted Answer

Government assistance is considered a benefit rather than traditional income, but for purposes of financial reporting, documentation, or eligibility determination for other benefits, it is often listed in financial documents such as Schedule I to provide a complete picture of an individual's financial situation.

Question 8

The client's daughter is taking a year off from college because of Covid-19 restrictions. She recently moved back in with the client and started a part-time job online, where she earns approximately $600 per month. She uses her income to cover her basic expenses. Her contribution is included in Schedule I.

Accepted Answer

Schedule I is used in bankruptcy filings to list a debtor's income, not the contributions from dependents or household members. The daughter's income would not be directly included in Schedule I; instead, the debtor might list any financial contribution the daughter makes to the household separately, if at all.

Question 9

The client's unemployment compensation benefits expired, but he is still without work. His brother is helping him financially, but doesn't reside in the house with him. Is the brother's contribution included in Schedule I?

Accepted Answer

According to the bankruptcy rules, regular contributions to a household's expenses, including those from a non-resident like the brother in this scenario, should be included in Schedule I as part of the debtor's income.

Question 10

Your client earns $275 gross per week. What is his monthly income?

Accepted Answer

The answer of Your client earns $275 gross per week....

Question 11

Your client has resided with a domestic partner for more than six months. Is the domestic partner's income relevant?

Accepted Answer

The answer of Your client has resided with a domestic...

Question 12

Describe the difference between a domestic partner, spouse, and household member contributing to the expenses for bankruptcy purposes.

Accepted Answer

The answer of Describe the difference between a domestic partner,...

Deck 13: Schedule I: Income