Getting married in the middle of a Ch 13

[ame8199]

So I filed BK in August 2009 as single. I planned on getting married July 2010. How will me getting married affect my bk case? Ive called my paralegal, but shes taking care of more than her share of cases because their other paralegal quit. Its not a pressing matter, but Im just curious

Has anyone got married in the middle of their Ch. 13? Did you payment go up once the court found out you are married? They shouldnt consider your husbands money right since you filed single?

Im worried, Thanks

[lrprn]

How will me getting married affect my bk case?

First, congratulations on your coming marriage, ame8199!!

Unfortunately, yes, marriage during Chapter 13 bankruptcy can affect your bankruptcy.

When filing bankruptcy, you disclose your income and expenses so that the court, trustee, and creditors can fairly determine your financial situation and your ability to pay on a Chapter 13 payment plan.

In Ch 13, the court looks at the filer's financial situation at the beginning when they file *and also* throughout the three or five years of their plan when there are significant, long-lasting changes - like marriage.

When you get married during a Chapter 13 bankruptcy, you may be able to pay more to your creditors because your monthly net income (income less expenses) may increase if your new spouse helps pay household bills. However, if your new spouse does not work and does not pay toward household expenses, you may actually have less money after marrying to pay toward your payment plan.

Regardless of whether or not your new spouse works and contributes to paying household bills or not, you need to notify your lawyer who will notify your trustee about your marriage. Depending on how your finances shift after the marriage and how much (if any) your spouse contributes towards running the household, your Chapter 13 bankruptcy payment plan may need to be amended to reflect a new monthly payment.

Even though your new spouse may impact your payment plan, your new spouse did not file bankruptcy. His/her finances will not be affected in any way.

[ame8199]

Thanks for the quick reply. When I filed, I was living with my brother and we were sharing financial expenses. I am moving in with my fiance in a week, and I will be sharing expenses again. Before I got engaged, I was gonna change my schedule J so it would lower my payment because I would have more expenses, but Its all the same now because I will be living with someone else again. I could try to change my plan, but Its all pretty much the same that I will be paying. He doesnt work much, he'll be going to school here soon, so Im taking most of the expenses but he is helping a bit.

I will let them know because my name will change and all that good stuff.

[BubbaGump]

I'm in the same boat... considering getting married and just starting a Chapter 13 plan (not confirmed yet).

As far as I see it, there's no reason for the state to have any business in my personal affairs, especially if it screws with the bankruptcy payments. There is no point in getting married if it saddles my soon-to-be spouse with having to dump part of her salary toward my debts, even if her salary minus expenses would add very little to nothing, it's definitely not worth the hassle.

I ended up being on the means test number, rather than Schedule J because one is apparently stuck with the higher of the two numbers. So my current actual expenses were only taken into account for determining that the plan is feasible.

We're taking the route of having some sort of "commitment ceremony", exchanging rings, but skipping going to town hall to get a license. It gives those in the family who need it the peace of mind, and at the same time keeps those who need not be in the know out of her business.

Then again, if she weren't working and I could qualify for a Chapter 7 discharge, we'd be headed to town hall first thing tomorrow morning...

[woeisme]

BubbaGump,

You should really consider talking to a lawyer about a medical power of attorney, stuff like that, because the marriage license is also critical in those kind of events, if one of you became ill the other would have absolutely no right to have any say in your care decisions if you just have a "commitment ceremony" with no legal standing. My hubby and I also have limited powers of attorney to act in place of each other in business situations, like at the bank, etc, but this is only if you and spouse are 100% on the same page as towards your joint finances.

[justbroke]

From experience... it can surely affect your Chapter 13 Plan. I had actually already factored into my Plan the (new) wife and 2 children. You will certainly need to work with your attorney (if you had one) to draw up a new Plan that takes into account your change in circumstances.

Congratulations!

[BubbaGump]

If you've already accounted for her paying for half your rent and utilities, and she's earning enough of an income, you might really want to seriously reconsider getting married. Get the power of attorney documents and whatever else you need but having her income considered in your Chapter 13 could be devastating in terms of building a savings nestegg. As far as I was led to understand, if I'm not married, then her income and whatever she contributes to savings can't be considered, just what she gives me toward rent and utilities. No way in hell am I going to decimate my family's ability to save money for the next five years just to have a marriage license (especially already being divorced once).

Otherwise, congrats on the upcoming wedding. Just make sure to look out for yourself (and her, and your family) in the process because rest assured the trustee will not.

[diggy]

this is good to know.

I was wondering the same. We may just go ahead by way of the commitment ceremony and by-pass the license until AFTER the 5 years are up. I'm not comfortable with having him tied in any way financially to my BK. Also thanks for the tip re: the power of attorney docs being drawn up. That helps as well.