Is Family Support Considered Income for Bankruptcy?

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If you are considering filing bankruptcy, I am sure that you have been researching what types of bankruptcy are common and what they may involve. Upon doing your research, I am sure that you have seen the word “qualify” a good number of times.  “How do I qualify?  Is it not enough that I can’t pay my bills?!?!” one might say, but indeed you must meet income qualifications which have a major impact on which ever bankruptcy you choose to file. What is considered income you may ask? The most common type of income is a salary or wages you earn from employment.

Mother and Daughter

Many people going through financially tough times will get support from their family and friends. So, with that said, is family support considered income for bankruptcy? Yes. If you receive financial support from family on a regular basis it is also considered income and must be included in your budget. Just because it’s not reported to the IRS or State when you file your taxes, doesn’t mean it’s not considered income in your bankruptcy.

Here are some other kinds of income that must be included in your bankruptcy:

Unemployment compensation

Babysitting/Side jobs

Child Support

Alimony

Self Employment

SSI (Social Security Income)

Retirement/Pensions

Retirement/Pension withdrawals

Sales of stock

Rental income

Money received for room and board (support from a roommate)