Same Sex Marriage and Bankruptcyby Victorianne C. Maxwell (Maxwell Law Firm, PLLC)
Your Gross income is used to determine which chapter of consumer bankruptcy you qualify for. There are certain things that are factored into a client’s income and other items that are not.
Sources of Income include:
- Earnings from wages
- Income for rental property
- Unemployment Wages
- Disbursements Pension, IRA, 401Ks (Cash-ins)
- Funds received from Trusts
- Disability Payments
- Income Tax Refunds
- Bonus Payments
- Social Security Benefits
Amounts received from a loan disbursement such as a student loan, private loans, retirement loans, or any other type of loan are not considered to be income. Generally, borrowed money is not income. The reasoning behind this is that If you borrow money from a student loan agency and do not receive a 1099 or W2 at the end of the year and you do not have to include that money in your taxable income.
As for grants and scholarships it depends on the nature of the scholarship. A scholarship amount you use to pay any expense that does not qualify is taxable, even if the expense is a fee that you must pay to the institution as a condition of enrollment or attendance. However, prizes and amounts paid for services (fellowships) are taxable so they would be income for purposes of bankruptcy. [See IRS publication 970 ].
If you are considering bankruptcy, you should consult with a duly licensed Bankruptcy Attorney in you area to discuss whether you qualify and your options. Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. We have two offices in North Carolina one in Concord and in Charlotte. You may schedule your appointment by calling 704-461-1883 or save 25% off the fees and schedule online.