This method is ideal when the debtor receives varied or inconsistent income. With this method, all pay advices from the last full 6 months will need to be entered.

Entering six months of pay advices by hand? You can export a CSV template and import your client's pay advice data instead of typing each one in. See Import and Export Pay Advices.

Means Test: NextChapter will use the income entered to calculate the monthly average to be used on the Means Test.

Lock Income: NextChapter will use the filing date to lock in the income dates entered so that you can prepare any amendments later.
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Schedule I: NextChapter will use either the most recent pay advice entered for Schedule I. If you would like a different pay advice used, you can override this option by checking the box "Use on Schedule I" for a different pay advice or by checking the box "Use 6 Month Average for Schedule I."

*Tip: If the amount you want to use for the Schedule I income doesn't match any of the pay advices entered, you can enter a new pay advice with a "Received On" date that is outside of the last full 6 month and check the box "Use on Schedule I." NextChapter would then only use the income on that pay advice for Schedule I and it would not be used for the Means Test monthly average.

You may also use an average of all income for Schedule I by clicking the box "Use 6 Month Average for Schedule I." (This will also default to use the 6 month average of all deductions for the means test. If you need to override any deductions you may do so in Means Test Questions.)

This method works great for debtor's who are salaried or who receive the same amount each pay. This option can also be used if you know the amounts you would like to use on Schedule I and the Means test.

Means Test: NextChapter will calculate the monthly average for the Means Test based on the pay advice entered by the frequency that the debtor is paid.
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​Schedule I: The one pay advice entered will be used for both the Means Test and Schedule I, unless the box is checked to use a different pay advice for Schedule I.

This method is ideal for clients with inconsistent pay, as it calculates the total income earned during the 6-month window without requiring you to enter every individual pay stub.

For this method, you will need to enter the first pay advice received immediately preceding the 6-month window and final pay advice received at the end of the 6-month period. Each pay advice should reflect the total year-to-date earnings as of that date.

*The dates for this entry method serve as a guideline for the calculation and will not appear on the generated forms.

If you'd rather type in the figures yourself instead of relying on pay advice calculations, click the pencil icon next to Manual Entry, below the entry method options. This works independently of whichever method is selected above it. You can check Schedule I, Means Test, or both to override just that form's calculation with your own numbers, while the other form (if left unchecked) continues to use the selected method.

Means Test: Enter figures manually by checking the Means Test box under Manual Entry; the deduction amounts flow into Means Test Questions > Override figures from I and J.

Schedule I: Enter figures manually by checking the Schedule I box under Manual Entry; the Gross Monthly Income you enter updates the Income Calculator in real time.

NextChapter doesn't accept negative numbers when entering income for Schedule I or the Means Test, since the official bankruptcy forms don't allow negative income values there. If you need to reflect a business loss or other negative income, attach a supplemental form to document the loss for the court.

This restriction only applies to income entry fields. Other calculated figures, like net monthly income on Schedule J, can show a negative number when expenses exceed income, and that's expected and correct.

For more information about income click here!