How does it work with only one spouse filing Chapter 13?

[Contemplating]

Suppose you have a situation where pretty much all of the debt, mortgages and all, are in the name of only one spouse.

When calculating the "disposable income" available for plan payments do they take all the "disposable income" of the non-filing spouse as well or how would that work?

[optimistic1]

I would guess only if you live in a community property state, but I might be wrong.

[justbroke]

Suppose you have a situation where pretty much all of the debt, mortgages and all, are in the name of only one spouse.

When calculating the "disposable income" available for plan payments do they take all the "disposable income" of the non-filing spouse as well or how would that work?

Yes. You must include non-filing spouse income as well. HOWEVER, there are deductions to the household income in the Means Test which allows you to not use portions of that income.

It's called the marital adjustment.

I know neither how frequently it's used nor how much income you can offset using it.

[Contemplating]

Non-filing spouse's income at budgeting phase?

Actually it wasn't at the "Means Test" stage I was curious about, but at the later stage where they are actually working out the budget for the Chapter 13 payments plan.

If only one spouse files, does the non-filing spouse's income over what is contributed towards the monthly expenses still considered part of the "disposable income" available to pay towards the filing spouse's non-secured debts?

[justbroke]

Actually it wasn't at the "Means Test" stage I was curious about, but at the later stage where they are actually working out the budget for the Chapter 13 payments plan.

Ah, but you misunderstand then. The means test is how they determine Chapter 13 payments.

If only one spouse files, does the non-filing spouse's income over what is contributed towards the monthly expenses still considered part of the "disposable income" available to pay towards the filing spouse's non-secured debts?

Yes, it is!

The changes to the Bankruptcy Code in 2005 (aka the BAPCPA of 2005) started this means test junk. For Chapter 13, it's Form B22C. This is the same form which technically determines your plan payments. (I say technically because there are some instances where the Disposable Monthly Income calculated by the means test (Form B22C) is not necessarily used to calculate your projected disposable income.)

[hey72]

I filed this way, with my wife not included in the bankruptcy. Her income had to be reported and included in 'household income', but her expenses were included as well. It is completly possible for these to cancel each other out, so to speak.

[woeisme]

Entire household income, and entire household expenses are taken into account for the budgeted payment, whether 1 person files or both. Originally since I had bulk of debt in my name, I was going to file alone, but hubby's smaller debt was at high interest rates and the budget only allowed him to make minimum payments, so we decided to file joint so that we wouldn't come out of 5 years of BK with him still owing on some of his debts.