About Me
“ Craig D. Robins, Esq., has been a practicing Long Island bankruptcy attorney for over twenty-four years ”
Written by Craig D. Robins, Esq.The simple answer is that all income of any kind must be disclosed in a bankruptcy filing. Some clients think that because they “work off the books” they don’t have to disclose that income. That’s certainly not the case. All income must be disclosed — no matter how it is received.
In addition to salary and earnings from employment, all other types of income must be disclosed as well. These include:
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Rental Income
- Business Income
- Investment Income
- Child Support, Alimony, and Maintenance
- Gambling Winnings
- Pensions and Retirement Income
- Individual Retirement Account (IRA) Withdrawals
- Life Insurance Policy Withdrawals
- Money received through Inheritance
- Social Security / SSDI Benefits
- Disability Payments
- Unemployment Insurance Proceeds
- Workman’s Compensation
- Food Stamps or Welfare
- Annuity payments
- Regular Contributions from others in the household
- Payment on Notes and Mortgages you own
Even though all income must be disclosed, that doesn’t necessarily mean that all of it must be included in the means test. For example, Social Security payments do not fit into the means test calculation.
There can be strict penalties for failing to accurately disclose all of your income. They include having your bankruptcy petition dismissed or being denied a discharge. Consumers have a great opportunity to discharge their debts with bankruptcy. It’s not worth messing around and jeopardizing your ability to eliminate your debts by neglecting to reveal everything.
