The non-debtor spouse

[nceguyfromne]

A couple questions regarding my involvement as a NON-DEBTOR SPOUSE:

1. Would a trustee or judge frown upon a non-debtor spouse adjusting their 401(k) contributions upward (say, to 5 to 7% of gross pay), and the potential benefit it could have to the Means Test, prior to filing? Is there a particular window of time within which the non-debtor spouse's actions could impact the debtor spouse's case (i.e. cause a finding of "bad faith")?

2. As I understand it, it is generally acceptable for a debtor to purchase a reasonable vehicle prior to filing for bankruptcy, particular a Chapter 13, since it is presumed that the debtor needs a reliable vehicle that will last through the duration of the case. Would any of these standards apply to the non-debtor spouse (again, keeping the idea of "good faith" in mind)? Would the non-debtor spouse's purchase of, say, a ~$20-25K vehicle prior to his/her spouse's filing, and the potential benefit it could have to the Means Test, create any potential issues?

[PapaChoncho]

Hi,

I would like to see your questions answered as well. We are into a year of our chp13 under my wife only. Once my car loan was recently paid off, the trustee had a step in our plan where my wife's payment would increase by the same amount. I want to now buy a car in order for one, to reduce our trustee payment back to where it was, and two, to use that payment to purchase a car I need. Our attorney said it would not be a problem, that when I was ready, she would process some new forms to the trustee. I have a post myself asking about this here about 15 posts below yours, but no answer yet. Would love to hear from someone in our same situation. thanks.

[keepsmiling]

People purchase cars regularly prior to filing a 13. It seems to be mostly accepted as good planning. It is MUCH easier to get one BEFORE filing rather than trying to get one while in an open BK.

[nceguyfromne]

Hi,

I would like to see your questions answered as well. We are into a year of our chp13 under my wife only. Once my car loan was recently paid off, the trustee had a step in our plan where my wife's payment would increase by the same amount. I want to now buy a car in order for one, to reduce our trustee payment back to where it was, and two, to use that payment to purchase a car I need. Our attorney said it would not be a problem, that when I was ready, she would process some new forms to the trustee. I have a post myself asking about this here about 15 posts below yours, but no answer yet. Would love to hear from someone in our same situation. thanks.

Unfortunately this is a very tough question to get answered, both here and elsewhere, for obvious reasons I'm sure. It's a funny dynamic, this "non-debtor spouse" thing. Whether or not the court has direct jurisdiction over your actions, you are nonetheless bound by their will because your spouse's case depends on it.

Fortunately, it's looking increasingly likely that my wife will not be filing. The creditor that was driving this decision seems poised to negotiate a feasible settlement and at this point I am more than happy to throw a few thousand dollars at them to avoid 5 years of a trustee looking over my shoulder. No offense, of course, to you or anyone else who has gone down this path.