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SECTION 1200 INCOME VERIFICATION
LIHEAP MANUAL JANUARY 2022 63
1200.2 BASIC CONSIDERATIONS (Cont'd)
If a child is in Regular Foster Care and unrelated to the head of the household, then the child would not be included the household count for eligibility determination. If the child is in Relative Placement Foster Care and within the degree of relationship to the head of household, then the child may be included in the household count at the request of the head of household but is not required to be included. If a household member receives income jointly with another person or a group of persons, the portion that belongs to the household member is determined as follows: If there is an agreement between the parties that specifies how they will divide the income, this agreement is used to determine the amount of income to consider. If there is no agreement, a pro rata share of the income is counted to the member whose income is being considered.
1200.3 BANKRUPTCY
Bankruptcy is a condition whereas a debtor, either voluntarily or invoked by a creditor, is judged legally insolvent, and the debtor's remaining debt(s) is administered and distributed to his/her creditors.
Income directed to pay creditors in a bankruptcy is not deducted from gross income in the 1/E budget unless the income is otherwise exempt by policy. 1200.4 GARNISHMENT OF WAGES
Garnishment is a condition whereas a debtor has wages/monies withheld by an employer/entity to pay a debt owed to a third party.
Income directed to pay creditors via garnishment is not deducted from gross income in the 1/E budget unless the income is otherwise exempt by policy.
1200.5 VERIFICATION
Verification of income is obtained in the following order:
• The customer should provide verification from the payment source. • If the customer cannot obtain the verification, the agency may request it directly from the payment source. • Verification can be obtained from a collateral source, a person who has knowledge of the income, if verification cannot be provided by the payment source. • The statement of the customer may be accepted if all other attempts to verify income are unsuccessful and the customer has cooperated with previous attempts to obtain verification.