Married After Confirmed Chapter 13: Economics?

[chapter13]

I am recently married in California and trying to understand: How marriage, after a confirmed plan, changes the economics of the plan.

I became married late last year, well into a confirmed Chapter 13 plan. My new Spouse had no involvement, of any kind, in the case. All debt obligations occurred prior to us even knowing each other.

Now we co-mingle accounts as any normal married couple does.

I am trying to understand how my new Spouse's income, savings, assets, and tax refunds will be seen by the Trustee, now that I am legally married. I am concerned that because we are in CA, the Trustee can go after the Spouse's assets to augment the amount of money paid to the creditors-- even though my Spouse had nothing to do with the incurred debt:

Can the Trustee go after the Spouses:
1. Tax refund?

2. Disposable income (to increase the Plan payments)?

3. Savings or other assets?

4. Does filing a tax return as Married Filing Seperate make any difference? We lose the economic tax breaks of filing jointly, but these discounts are outweighed by lose of the Spouses tax refund, increase of payment plan, and lose of other assets.

5. Does the prenuptial agreement provide any protection to the Spouse from the Trustee going after their assets and income?

Any insight into how a marriage, after a confirmed Chapter 13, effects the financial aspects of the Chapter 13 plan, please share. If there is another thread on this topic, I am grateful for the forward.

[optimistic1]

I would imagine, that because the marriage took place after confirmation, and the debts listed in the petition were not incurred by your new husband, then nothing would change.

[becky20]

I would think payments might go up since you now may have more DMI, but since you're filing married, but filing separate maybe not... I wouldn't THINK they could go after your spouse's assets, but paycheck, I don't know. Did you contact your attorney???

[LadyInTheRed]

I'm pretty sure that the assets your spouse had before the marriage are not relevant to your bankruptcy and that your spouse cannot be held responsible for debts incurred before your marriage. But, if your spouse added your name to a savings account or another asset that he/she owned before the marriage, that may be considered a gift to you that the trustee may be interested in.

I am hoping someone will provide more information regarding the effect of your spouse's income because I am also in CA and will be filing a Chap 13 separately from my husband who currently has very low to ziltch income, and I wonder what will happen if his income increases. Since you say your accounts are combined, it sound like he is contributing to household expenses. The size of your household has also changed. So, if his contributions to expenses are more than the increase in expenses based on the increase in household size, it seems the trustee would want to increase your payments. But, I don't know for sure.

Also, since California is a community property state, I believe half of your spouse's income is yours (assuming it is income resulting from his/her efforts during marriage and not passive income generated by his/her separate property). Does that mean 50% of your spouse's income must be considered your income for calculating your disposable income? I don't think so based on my understanding on how you complete the schedules if you are married by filing separately. But, what your spouse contributes to the household may still be relevant. What if your spouse deposited all of his/her income into a sepearate account and refused to use any of it to pay joint household expenses and instead contributed it all to a retirement account or 401K or just spent it all on tickets to sporting events, beer and peanuts or designer shoes and clothing and dining at fancy restaurants every night? It's not like you have any control over what he does with checks made payable to him.

I don't mean to highjack your thread, but I have thought a lot about this issue, but haven't seen it come up much in the almost 3 months I have lurked here. Most of my bankruptcy knowledge comes from reading these boards, so I hope somebody with more knowledge on bankruptcy in CP states will have some ideas. Regardless of the answers you (we) get here, I hope you will keep us updated on what happens.

[chapter13]

I would imagine, that because the marriage took place after confirmation, and the debts listed in the petition were not incurred by your new husband, then nothing would change.

This is exactly what I am trying to determine. I too imagine the plan won't change; but I am looking for a definitive answer. And yes, I am discussing with my attorney. It is a complicated matter based on timing of events.

When I filed the Chapter13 plan, I was living with my financee but were not married. Thus, the total monthly expenses were already considered to be half mine and half financee since there were two of us in the household. However, the spouses income was not in the equation?

So, now that we are married, does that change? My wife will divorce me immediately if the Trustee is going to grab half of her disposable income and take her tax refunds

=============

I wouldn't THINK they could go after your spouse's assets, but paycheck, I don't know.

Is a future tax refund of a spouse (married after confirmation and not involved in the plan) considered an asset that a Trustee can grab?
=============

But, if your spouse added your name to a savings account or another asset that he/she owned before the marriage, that may be considered a gift to you that the trustee may be interested in.

We added each other to each of our separate checking accounts. That is all. But, it is into one of these checking accounts that our salarys are direct deposited and all our expenses are paid from.

=============

Since California is a community property state, I believe half of your spouse's income is yours (assuming it is income resulting from his/her efforts during marriage and not passive income generated by his/her separate property).

Does that mean 50% of your spouse's income must be considered your income for calculating your disposable income?

Anyone have definitive experience on how Community Property law effects a Chapter 13 plan, after confirmation and if the Debtor and Spouse were married after 341 confirmation, and Spouse had no involvement in the debt.

What assets of the Spouse is the Trustee able to get?

[ccfriend]

I found this doing a Google but I am not sure how accurate it is.

http://ezinearticles.com/?Marriage-During-Chapter-13-Bankruptcy&id=1268433

[lrprn]

Congratulations on your marriage!! Since your marriage occurred *after* you filed your 13, as already stated, even though you live in a community property state, since you filed before the marriage, your new wife has no relationship with any your debts accrued before you filed.

The key is how your trustee will view the money your new wife now contributes to the running of your mutual household. Your trustee *could* decide to ask the court to rerun your Means Test and Schedules including the amount your new wife is now contributing to the running of your household with the intent of modifying your plan *if* enough additional disposable income appears. Of course, you get to include increased expenses in the refiguring as well.

It's only the portion of your wife's income that goes toward running the household that matters. Because she didn't file with you, the remainder of the money she makes is hers and can't be touched by the bk court.

If you haven't already, please ask your lawyer how your marriage may impact your 13. Also ask him/her if it makes sense to keep your money in separate accounts until your discharge so there's no doubt which money is yours and which is hers.

You aren't the only person to ever get married during a 13. Your lawyer should be able to sort out all the issues involved and ease your concerns. Good luck - hope everything goes your way!