How to determine wife's contribution to expenses

[Slingerland]

Good morning! I have another question in filing a solo C-13 please. I wil be filing, my wife will not be. Part of the 22C is to calculate the marital adjustment and back out her income not used for family expenses.

The question is: how?

My wife and I use a "Mine - Joint - Hers" checking account system. We both contribute to the joint account, which pays household expenses (utilities, food.) We also have separate checking accounts for personal expenses (credit cards, car payments, gasoline, etc.) My car payment comes from my checking account, her car payment from hers.

Both of us are co-debtors on the car loans. The Arkansas trustees will require that her car be included in my C-13 filing (I have no objection to this, it's helping me sell this to my wife.) Where this gets interesting is trying to determine how much of my wife's income is used for joint expenses.

My original plan was to use the income she contributes to the joint account as her contribution to family expenses. BUT... since she pays her car payment out of her personal checking account, will the Trustee raise an objection?

As a FYI, my wife REFUSES (on screaming... literally... hissy fit threat of divorce) to provide her personal checking account statements for bankruptcy proceedings.

[SMinGA2]

My understanding is that $ contributed for household expenses (mortgage/rent, food, utilities, etc.) is counted - and those expenses are counted in full. You would count the $ she pays on her car payment, since that is technically your debt also.

If you add up the things that you solely pay, and figure your DMI, the end result should be the same when you factor in her contribution. Her contribution does not change your DMI, but it changes the monthly total for the means test.

Example:

Your share of the household expenses/bills/whatnot is $2500.
Your additional obligations (car, vehicle gas & maintenance, insurance, etc.) is another $1500.
You have net income of $5000.
Your dmi is 5000 - 2500 - 1500 = $1000.

Your spouse also contributes $2500 to the household bills and whatnot, and pays $400/mo on her car loan.
Your means test net income is $7900, less household bills/whatnot of $5000, less your personal $1500, less her $400 car loan. DMI still is $1000, but your wife's income factors into whether you are over or under the median.

[Slingerland]

Thanks! In the case of the means test, we're definitely a C-13, plus there are secured assets I want to keep. My big concern is that if(?) the Trustee starts asking where the payment for my wife's car came from... and she refuses to provide her checking account statements... the trustee may start considering it an abuse.

My attorney appt is on April 13th... definitely goes on the list of questions to ask...

[SMinGA2]

If you're ch. 13, the big part of the means test is to determine if you have the option of a 3 year plan. If you're over median, it must be 5.

I see your point, but from my perspective I don't think it will be a problem. The $ from your wife means you have more DMI to pay into a plan. If she were not paying the car payment, you would have to. In my scenario above - that would mean $400 less DMI, $400 less each month for your creditors.

[Slingerland]

If you're ch. 13, the big part of the means test is to determine if you have the option of a 3 year plan. If you're over median, it must be 5.

Definitely a 5 year, I'll be paying about 30% or so to unsecured creditors.

I see your point, but from my perspective I don't think it will be a problem. The $ from your wife means you have more DMI to pay into a plan. If she were not paying the car payment, you would have to. In my scenario above - that would mean $400 less DMI, $400 less each month for your creditors.

In my case, I'm trying to keep the DMI down ;)

[Jf24]

Same situation as the OP. Would I be adding up my wifes expenses on line 17 of means test. She has CC payment, monthy weight watchers and her childs college fund? About $250 a month total.