Can you file Ch. 13 based solely on your spouse's income?

[shark66]

First of all, I apologize for being klutzy with the forum's search function, since I'm almost certain that someone must have asked this question at some point...but I wasn't able to find it......so here we go:

Had some friends at our house a couple of nights ago, they are at the final stage of robbing Peter to pay Paul and well aware of it, looking into filing a Ch. 13 (they do know that I'm in an active case) and here's the bottom line:

a) The husband is the one with the income. He claims that his job would be gone in days if he filed, and that he'd much rather lose the house than his current position. Since I've known him for many years, I'll just state that the likelyhood of him changing this position is extremely slim. I wouldn't put one red cent on that bet.

b) The wife used to be the main breadwinner, lost her six-figure job a few years back but not her spending habits which is one of the main avenues that have gotten them to this point. She has no problem filing - he has no problem with her filing by herself - but she doesn't have any income to call her own.

Filing a Ch. 7 is not an option here, due to mortgage arrears.

I know that all income (for the most part) comes into play when one files Ch. 13, but can you actually file a Ch. 13 using solely your spouse's income while they're not filing?

I didn't have an answer for them. What do you good people of BK forum say?

Yes? No? Maybe? Caveats?

Thanks in advance for any insight.

[ShooFly]

Is the house in only her name? If so, it may work based on household income. If the house is in both names, they would both have to file. You don't mention what state they are in... but in Florida they do not garnish your wages so an employer never has to know. If the state requirement is a wage garnishment, then his work would be notified. Hope that helps a little.

[shark66]

The house is in both names.

The state is PA.

[shark66]

Can I say "bump"?

I'd be more than happy to send my friends to a competent attorney - if I knew one around here, that is...this board has shown a lot more competence on most basic BK questions I needed answered when I was about to file than any attorney I had interviewed...that's how I ended up being "pro se"...

[LadyInTheRed]

Is the house in only her name? If so, it may work based on household income. If the house is in both names, they would both have to file. You don't mention what state they are in...

In community property states, one spouse gets the benefit of the other spouse's discharge except that a creditor could come after the non-filing spouse's separate property and the non-filing spouse loses the protection in the event of divorce or the death of the filings spouse. Since the OP is in PA which is not a community property state, I believe what ShooFly says is true for PA. Anyone with the same question in a community property state (and even in a SP state) should consult an experienced BK attorney regarding how one spouse's filing affects another.

Unless a security clearance is required for a job, it is illegal for an employer to fire somebody because they file for BK. See Bankruptcy Code Section 525 http://www.law.cornell.edu/uscode/us...5----000-.html, subsection (a) for governmental employers and subsection (b) for private employers.

[shark66]

Thanks for the response, Lady...

My friend's job does require a security clearance, so the option of him filing - solely or jointly - is a non-starter. That's how this question came up during our conversation to begin with...

I filed by myself, but I'm the one with the income in this family, and my job was not jeopardized by filing BK, but their situation is about the exact opposite - apart from the need for someone to file a Ch. 13 in the first place...