Roommate/Nonmarried Significant Other and Bk

[lorelei]

So, since everything I've read on bankruptcy really only focuses on whether you are single or married, it didn't even occur to me until a few days ago to wonder what the impact of having a roommate or an unmarried partner might be.

Here's my situation.

My girlfriend moved in a year ago from out of state. Michigan being what it is lately, she's not had much luck finding work. She did, however, get hired by the Census for a few weeks. During those weeks, she paid $250 a week to me to cover housing expenses, but that job is now over and she is unemployed again.

So - Are we a one-person or two-person family? Did those checks for $250 constitute income (It was $1,750 total). Do our allowable expenses increase, and if so, by how much?

I figure I'm not the first person in this situation, but I'm feeling all

[lorelei]

A case from 2009)

Does anyone know any more about this? Because it looks like it will make the difference for me between Ch 7 or 13. Here's hoping...

[stratos]

I think in most jurisdictions, the household size/roommate issue is still unsettled, so a legal argument can be made either way. As I see it, here's the strongest arg: If the individuals share household expenses, there are 2 in the hh; if not, they live at the same place, but do not share a hh, so only 1 in the debtor's hh.

If each person is obligated to pay rent (i.e., on the lease), but only the non-debtor actually does, the amount he or she pays on behalf of the debtor is income to the debtor and should be reported on the means test. If the debtor does not have an obligation to pay rent, but is permitted to live at the residence by the other rent free, arguably, there is no income based on the other's payment because there is no expense. What would the amount of the "rent" be anyway. There's no reason to believe it would be half. Logically, the rent-payer could charge the debtor $10/mo for rent if he or she chose to. I paid my roommate $300/mo for rent in a house he owned. His mortgage payment was certainly more than $600/mo, but he was gaining equity in the house. The $300 was an arbitrary amount.

In re Bostwick, 406 B.R. 867 (Bankr. D. Min 2009) is probably the case that is most on point. If you're wondering about this issue take a look at it.