A change in monthly income can sometimes make bankruptcy filing more difficult. In a Chapter 7 bankruptcy, the bankruptcy court looks back to the past six months and asks for the total monthly gross income for each month. In some months, you may make more in other months. Why is this level of income important? In order to qualify for a Chapter 7 bankruptcy, you must pass the Means test. This test determines whether or not a person can file a Chapter 7 bankruptcy. The rule of thumb is that there is a limit to what your annual income is to determine whether or not you qualify for this Chapter of bankruptcy.
What does this have to do with the past six months of income? The court takes 6 months of actual income and multiplies it out over the course of the year. Say in December you get a holiday bonus and your income jumps up a few thousand dollars. If you are close to qualifying, it is possible that this boost income may make it that you no longer are eligible.
If you are curious as to who qualifies for a Chapter 7 bankruptcy, consult with a bankruptcy attorney who can help you determine which Chapter of bankruptcy is best for you. Don't be concerned about the monthly shifts in income - just remember that even a slight boost can make an impact on an otherwise straightforward bankruptcy filing!