NYS Department of Labor unemployment benefits count as income for bankruptcy filing?
I'm preparing to file for Chapter 7 bankruptcy and my lawyer asked about all sources of income. I'm currently receiving unemployment benefits from NYS Department of Labor - about $450 per week. Do I need to report these UI payments as income on my bankruptcy paperwork? I've been getting benefits for about 8 weeks now and expect to continue for several more months while job searching. My lawyer wasn't completely sure about unemployment specifically and told me to find out. Has anyone gone through bankruptcy while on unemployment? Did it affect your case?
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Sydney Torres
Yes, unemployment benefits are considered income for bankruptcy purposes. You'll need to report all UI payments received in the 6 months before filing, and any ongoing payments need to be disclosed too. The trustee will want to see your NYS Department of Labor payment history. Make sure you have documentation of all your weekly claim payments.
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Alfredo Lugo
•Thanks for confirming. I can get my payment history from my.ny.gov account. Will this income affect my eligibility for Chapter 7 or just need to be reported?
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Kaitlyn Jenkins
went thru this last year... yes you have to report the unemployment $$ but it didnt stop my chapter 7 from going through. the trustee asked about my job search too since i was still getting benefits
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Caleb Bell
Unemployment income is definitely reportable, but there's good news - it's often viewed more favorably than regular employment income because it's temporary and typically lower than your previous wages. The means test calculation will include your UI benefits, but many people on unemployment still qualify for Chapter 7. Your attorney should be able to run the means test with your unemployment income included to see where you stand. Also keep copies of all your NYS Department of Labor correspondence and weekly claim certifications.
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Alfredo Lugo
•That's reassuring about it being viewed as temporary income. I'll gather all my NYS Department of Labor documents this week.
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Danielle Campbell
One thing to watch out for - if you're having trouble reaching NYS Department of Labor to get your payment records quickly, I used claimyr.com recently when I needed to talk to someone about my benefits. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Really helped me get through to an actual person instead of being on hold forever. Might be useful if you need documentation fast for your bankruptcy filing.
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Alfredo Lugo
•I haven't had trouble getting my records online yet, but good to know there's a service if I need to actually speak to someone at NYS Department of Labor. Thanks!
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Rhett Bowman
•Never heard of that service before but the phone lines are definitely terrible. Might check it out myself.
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Abigail Patel
Make sure your bankruptcy attorney understands unemployment benefits! Some lawyers don't deal with this situation often. The UI payments should be listed on Schedule I (current income) and you may need to update your filing if your benefits end before the case closes.
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Daniel White
UGH the whole system is so complicated... like you're already stressed about money and then they want every detail about every penny you get. But yeah definitely report the unemployment or you'll have bigger problems later
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