This option is good for situations when clients receive inconsistent pay and it eliminates the need to enter all pay advices received during the last full 6 months. For this method, you will need to enter the first and last pay advices received from the last full 6-month time frame.
*Note: If the debtor is filing between February and June, you will also need to enter the last pay advice received at the end of the year.
Means Test: NextChapter will subtract the first and last pay advices to determine how much income was received from the last full 6 months to the determine the monthly average income for the Means Test.
Suggested Pay Advice Dates: NextChapter will suggest the pay advice dates based on when you are filing the case. In this example, you are filing in February 2020. You will need income from August 2019 - January 2020. By entering in the dates next to the pay advices, you will be able to remember the dates and amounts used if you need to return to this case months from now.
Schedule I: NextChapter will use the full pay advice entered in this section for Schedule I.
Example: Debtor is paid twice monthly and there is YTD Income and one Pay Advice entered. The calculations for this specific example would be calculated as follows:
Means Test: $33,000 - $1,000 / 6 months = $5,333.33 per month
Schedule I: $2,125 X 24 pay periods / 12 months = $4,250 per month
For more information about income click here!